Keeping the Customers You Already Have Happy
Growing a sustainable business means managing customer retention. Customer retention is the measure of customer loyalty and is based on how many customers keep coming back for repeat purchases. While it takes a lot to earn a customer’s loyalty, there are ways to measure, improve and build retention rates. In this article, we will break down four key strategies that improve customer retention.
What is Customer Retention?
Customer Retention is a variety of activities or strategies aimed at keeping a customer for the long term. The goal is to turn first-time customers into lifelong consumers that keep coming back for your product or service. Customer Retention is crucial because
- Customer retention is cheaper than customer acquisition
- Loyal customers are more likely to spend money as time goes on
- Increased customer retention will drive profits
- Loyal customers are brand ambassadors
Customer Retention Rates
The first step to improving customer retention is to know your customer retention rate. Customer retention rates (CRR) show the percentage of customers that a company has retained over time. To calculate retention, use the following steps:
- Define the time frame you would like to study
- Collect the number of existing customers at the start of the period (S)
- Find the total customers at the end of the period (E)
- Determine the number of new customers added within that time period (N)
- Use the equation below to calculate customer retention rates:
[(E – N)/S] x 100 = CRR
4 Retention Strategies that Work
Now that you know your CRR, it is essential to reiterate that retaining customers costs less than acquiring new ones. So, before you go all in on new tactics designed to gain prospects, consider these suggestions on how to keep the customers you already have.
- Create A Seamless Process: First impressions are everything. So make sure your onboarding process is personalized, hands-on and focused on removing all customer pain points. If you create a seamless experience, customers will want to return because of the ease and positive brand experience.
- Customer Feedback: All feedback is good feedback! One of the most significant ways to keep customers coming back is to better understand how they feel about their experience with your product or service. Consider using a customer feedback survey to align your approach and meet the needs of your core customers.
- Stay Active: In today’s market, competition is high, and that means it is crucial to stay relevant to your customers. Keep your product and services at the forefront of your customer’s minds by sending out weekly newsletters or producing high-quality content on your website and social media.
- Reward Loyal Customers: Don’t take your loyal customers for granted. Let them know that you cherish their loyalty and set up a loyalty or rewards program.
Let Big Red Dog Marketing Help With Customer Retention
At Big Red Dog Marketing, we understand the value of a strong marketing plan when it comes to customer retention strategies. With clients located across the country, we focus on what your business really needs and understand how to make your company competitive to deliver high-quality results. From Integrated Marketing to SEO, we tackle any marketing need to help drive quality traffic to your website, raise conversions that build results and solve those complex problems every business owner faces.
Want to learn more about our team and how we can help your business? Feel free to give us a call at 919-926-8727 or email us at hello@bigreddog.marketing.
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