What is customer retention?
Customer retention is what organizations do to stop customers from churning or switching to a competitor. Increasing customer loyalty is a key goal of any business and contributes greatly towards sustainable growth. Despite this fact, and irrefutable evidence that existing customers are more valuable than new ones, customer retention has often taken a back seat to drive sales.
But this trend is changing, especially given the rise of subscription-based business models. There are clear competitive advantages of customer retention, and we're here to help you understand how and why the benefits of customer retention should be on your radar.
How do you measure customer retention?
Before we can start going through all the things you can do to increase your customer loyalty and retention, let's learn which metrics you should be focusing on. The only way to tell whether your customer retention plan is working is to choose your KPIs and track changes over time.
Customer churn is probably your most important KPI. This stat tells you the rate at which your customers stop doing business with you. You want to keep this number as low as possible.
Now that we got that covered, let's go into the 6 ways to increase customer retention!
#1: Provide great customer service
You can't expect someone to become a repeat customer if you don't give them great customer service.
More than resolving issues and providing technical support, you'll want your customer service agents to be polite, and friendly, and offer a helping hand to the customers at every step of the way. Moreover, you have to understand customer lifetime value for your company's growth in a positive way, because if your customer is happy then you're in a win-win situation.
Here are some things you need to take care of to improve your customer experience.
- REDUCE YOUR RESPONSE TIME
- PERSONALIZE YOUR CUSTOMER SERVICE
- BE AVAILABLE ON MULTIPLE CHANNELS
#2: Make your website shine
Your customers will be more likely to return to your offer if you optimize your website to provide them the best possible browsing experience.
What does this mean?