5 effective customer retention strategies

This strategy will help increase your revenue/profit

According to research, it has been shown that acquiring new customers can cost up to 7 times more than retaining an existing one.

Increasing your customer retention by just 5% can increase your profit up to 95%.

Customer retention is simply defined as a business ability to retain its existing customers to generate revenue from them.

To calculate your customer retention rate, use this simple formula: [(CE - CN) / CS] x 100

CE: The number of customers you have at the end of the period

CN: The number of new customers you acquired during the period

CS: The number of customers you had when the period began.

Every brand or company should prioritize retaining customers as it helps it's growth and success, and the major reason for such is :

🔹Cost savings

🔹A better bottom line

🔹Stronger loyalty

🔹 Positive word of mouth marketing.

Now, let's move down to the effective customer retention strategies.

1.keep improving your products:

If your business makes money by selling your products, then you should ensure you have a very good quality for your success and survival.

For example food in a restaurant, if that goes sour or no longer gets liked by customers other elements like price, interiors or even services become meaningless..

Ways to improve this is by simply researching on how your competitors make their products more innovative and appealing and implement the same to improve your product and get ahead of them.

2. Keep improving your services:

One thing a customer can never forget is how you make them feel, they may likely forget what they purchased from you, but the perception you created can never be forgotten.

Here are ways to move your customer service to the next level:

🔹 Provide a consistent and cohesive customer experience, make your customer feel they are getting the same level of service whether they are talking to you on the phone via email or a live chat.

🔹 Provide multiple contact channels as well as payment options to accommodate a range of communication and payment preferences.

🔹 Ensure your employees or staffs are well educated on how to attend to customer in the right way.

3. Provide a smooth onboarding process

This is a process of incorporating new customers into your business. You guide your new customers on how to use your product or educate them on how your services can benefit them all to solve their pain point.

Remember first impressions matters, this determines whether a customer returns or not.

During the onboarding process, if you have a team ensure you prep them well to address customers concerns.

4. Value customer feedback

To know best what is working and what's not working, it's best to hear straight from them as this is one of the most effective tools to improve customer retention.

Helpful tips you can use :

🔹 My conducting a survey you help give your customer voice this will help explain their satisfaction. It could be simply asking for a thumbs up or a thumbs down.

You can also ask specific questions like ;

– how satisfied are you with our products?

– What isn't working for you and why?

– Can you recommend our products to your friends/family?

🔹 Create your surveys with feedbacks from customer team members that the closest to understand common customers complete and general preferences.

🔹 Be sure to respond to your customers feedback properly and promptly given them solutions to how you tend to solve their problems.

5. Interact with customers on social media:

As of 2023, there are 4.95 billion people using social media.

All social media platforms, Instagram, Facebook, X, LinkedIn are potential sourcing ground for customers. Utilize this platform to generate interactions with your customers.

Create social media accounts for your company and encourage them to follow your social media accounts, regularly provide them with valuable content, educate them on your product/services, this will establish a bond between your brand and potential customers.

All these effective strategies listed are designed to help you achieve an overall means of retaining your current customers..

Customer retention isn't tied to just the decision you make, you have to combine customer retention strategies and customer engagement strategies to encourage more customers to choose you.

If you can do this properly, this could be a consistent funnel that will help you grow your revenue/profit painstakingly..

Which one would you be practicing today?

Feel free to express in the comment section the value you got from this …

Until my next edition next week (same time) do well to retain more customers this coming new week with today's effective strategies.

Stay safe fam 🥰

Yours dearly,

Iheanacho Vivian.