Customer retention strategies are used by businesses to retain their existing customers and build positive relationships with them. Customer retention itself is the ability for a business to turn its customers into repeat buyers and prevent them from doing business with a competitor. Some of these strategies comprise responsive customer support, customer loyalty programs, email marketing, customer surveys, and contextual customer support.
Understanding customer retention strategies
Customer retention strategies are those that help an organization retain customers.
Customer retention is more efficient and more profitable than customer acquisition, which aims to move customers through a marketing funnel and convince them to buy products or services.
Perhaps unsurprisingly, customer retention strategies are the lifeblood of subscription-based companies and service providers. Regardless of the business, however, customer retention strategies must focus on improving the customer experience to a point where customers are willing to recommend a brand to their friends or family.
Five customer retention strategies
Here are five ways a business can make its customer experience more convenient, personal, or rewarding:
Responsive customer support
Research proves that agile and responsive customer support results in higher customer satisfaction. In fact, a 2021 study found that 73% of surveyed customers considered speedy support resolutions the key to a good experience. Even when a problem cannot be solved right away, it is important businesses respond as quickly as possible to set the process in motion.
Customer loyalty programs
These are an effective way to boost customer retention because the promise of rewards motivates customers to purchase more frequently. Businesses can award customers points simply for creating a new account. Others may reward customers based on the total purchase amount or offer a discount code for a subsequent order. Today, buyer analytics data makes it easy for a business to determine its most loyal customers and reward them accordingly.
A customer retention strategy where purchase frequency is the focus. Many businesses shy away from email marketing, but in truth, the approach can be used to develop deeper relationships with customers before and after an initial purchase. Email marketing should always add value and not be seen as a carte blanche excuse to spam customers with offers.
These are critical to determine what the business is doing right and what it could do better. While an organization can never please every customer on every occasion, surveys are used to gather important feedback that can help identify overlooked patterns or trends. This feedback can be supplemented by customer support officers who can identify complaints or problem topics that reoccur frequently.
Contextual customer support
For consumers, there is often nothing worse than having the explain the same problem multiple times to different support staff. To increase customer retention, staff can use a tool such as Zendesk to give them context and personalize the experience. For example, support staff can easily pull up information on a customer’s contact details, notes, preferred language, and any previous conversations to get up to speed quickly.
- Customer retention strategies are those that help an organization retain customers.
- Customer retention strategies are particularly important to subscription-based businesses. However, the supreme importance of customer retention over customer acquisition is relevant to any organization regardless of its business model.
- Examples of customer retention strategies include responsive customer support, customer loyalty programs, email marketing, customer surveys, and contextual customer support.
Connected Strategy Frameworks