By Ashish Dwivedi The Most significant Golden rule of Business growth is retaining the Customers. A Customer is a Driver of your firm. Research says putting every single dollar to retain a customer is better than acquiring new leads. Whatever you launch in the marketplace it should not only be for the new prospects but also should be exceptional for the existing customers. Customer Retention helps to boost up sales by 80%.
Having adequate knowledge about this metric is indispensable. So join us now and let’s learn together to know about it in-depth.
Customer Retention Definition
This Greatest metric for all businesses means keeping the customers engaged with your powerful brand. So they buy more and more and hone your Sale goal. Repeat purchase means this metric will perk up your firm. If implemented the strategies properly, it can increase Lifetime Value (LTV).
Investing in retaining customers is a far better technique. You know every single key point of your customers. Plus you can offer what they like the most. Investing in acquiring new leads may take time and money as well. Retaining customers is unprecedented. It will give you more Sales and ROI.
Point to note:
- 18% of businesses focus on retaining customers.
- Around 6% of Marketers pay closer attention to SEO for retaining customers.
- 52% of Marketers curate Email Marketing strategies for Customer Retention strategy.
- 89% of firms believe that focusing on improving Customer service has a major impact on this metric.
Customer Retention Rate formula
People always crave to know how to calculate this metric. You are at the right place to know. We will elaborate this with an Example.
Suppose your company got 2000 customers at the start of this year. The company acquired 500 more vital customers a few months back. Now currently your business is working with only 1200 customers. So, how to calculate the retention rate?
1200-500/ 2000
The answer is 40%. It means your great business only retained 40% of the customers.
Why does this Metric matter the most for all Companies?
Make sure to read the complete list below-
- This is a Cost-effective technique. Businesses have felt that they invested huge money to acquire newcomers. We are not saying to eliminate the task of acquiring Leads. But retaining the customers saves your Time and Money. It is 5-25 times cheaper than getting new leads. So, without any shadow of a doubt, this metric is out-of-the-box.
- You are not the only one who daily thinks about “Business profitability”. If applied every trick and failed then make sure you strive for this metric strategy. It increases profit and aids businesses to grow globally.
- Getting loyal customers in your firm helps in sharing positive experiences everywhere about your brand. They even recommend others to strive for your business and buy SugarCRM Plugins (just an example). Recommendation to others no doubt is of utmost importance for business enhancement.
- Research says 20% of the existing customers give 80% more sales to your company. If you have not seen the staggering growth yet, chances are very-very high now. You know now what to do.
Customer Retention Examples
In this blog, we are going to unlock the two most prevalent but effective examples of this metric. It can help your business in strategy making.
- Suppose a Firm introduced Paramount CRM software for the customers. CRM stands for Customer Relationship Management. After the launch, the company got leads who watched and purchased the CRM system. The task of a team is still pending. To bring them back into the Sales funnel, follow-up with them by sharing Welcome Templates with those customers. Convenience them your team will always assist them in CRM and its functionalities. Follow-up after purchase is an awesome method for customer retaining.
- One more Prime example we have. Do you make changes in your products and services every week or month? If yes, how are you informing your customers? This is the question to ponder over. To build trust, they should know everything. Your task should be publishing a blog or sharing a Newsletter with them. Customers should know the entire changes in-depth. Updating helps them to work in a more advanced way. To keep customers and brands closer with each other, it is also mandatory.
2021 Best Customer Retention strategies to scale organizations
Some powerful strategies are a must to add to get better results. Hold your breath and read out each point.
- Entire Team involvement for Retaining
You trained your Customer Support team to provide bespoke solutions to your customers every time. This is where companies drop the ball. Training just the top-most team is not enough.
Your firm has a myriad of departments that contact and help your company with lead generation. The owner must be aware of the fact that training every department for retaining the customers is needed. Whatsoever strategies you noted, make sure to share with everybody who works in your firm for growth and development.
- Provide ultimate Customer Service to them
Retaining a customer is always a Daedalian task for every company globally. One of the reasons why customers leave businesses and try others is not getting better service from them. It doesn’t matter whether you launched plenty of products or more than your competitors.
Giving exceptional Customer service is basic where customers only demand top-notch from your side. For that, garner customers feedback and check out where your business needs improvement. And improvement opens the door to Growth and Profit.
- Take the Advantage of Automation
Businesses today are not doing repetitive tasks or any mundane tasks only because of Automation technology. Whether it’s Digital Marketing Automation or Social media, this technology proves the number one for every platform. Again it is mind-blowing just because it enables you to retain your valuable customers.
A hassle-free now to interact with dozens of customers at the same time. Share newsletter and offers to your customers who shared email addresses. Being more personalized helps you in retaining them for lifelong. As customers will interact with your products and services more.
- Tracking of KPIs is very crucial
Lots of metrics are there to know. Some help in understanding where your business stands and some help to know customers’ issues. To help your business shine like the sun, make sure to measure the accurate metric for customer retaining.
Businesses today are working wonders by tracking such actionable insights, so why not you? One of the reasons why we are suggesting this strategy is that KPI aids businesses to know customer main issues. You can resolve it and give them better solutions. Try now!
- Need to Reward your Loyal customers
Another sure-fire strategy that never gets eliminated is about giving good rewards. We have seen firms have loyal customers for lifelong. Have you ever given a reward to them? If not then you are leaving money on the table. Why so?
Engage with them by sharing rewards so that they buy from you again. This also opens the door of Cross-selling strategy and Up-selling as well. Customers feel like you value them, you pay attention to them, you care for them. Nothing better than hearing this “Thank you for everything” from your customers.
- Strive for Self-service technology soon
This technology-driven world wants everything to be done faster and easier. Nobody likes waiting so long and then getting what they are looking for. Suppose if your client gets an issue or wants to know something about SuiteCRM Plugins then calling is a primitive idea.
Leveraging Self service technologies like Document360 for FAQ section and Knowledge Base section. Customers will get answers to everything they are looking for. Thus, it saves time and manual effort. Businesses of all sizes should understand that waiting for long is worse. The self-service tech should be available for your customers.
- Reducing Friction will make everything easier
We have seen many shopping websites offer a seamless experience when you buy something. Just in clicks, you get the product. Not a single complicated method to force customers to try other sites and leave this. What about yours?
Making everything so simple such as buying something, check-out experience, page speed load, etc is advantageous for you. Less obstacles mean customers will buy more and more and chances are a bit high of purchasing again in the future. In short, reducing friction in purchasing products and services is a remarkable idea.
Bottom Line
Approximately 28% of the Marketers believe in social media marketing that can help them for Customer retention. This powerful metric once invested wisely gives lots of profit to your firm. You will never meet with the situation of the business doomed. All you need to do this is follow the world-class strategies that we unlock above. Also, we have seen many failed to find out the write formula of this metric. Not to be fret as we mention that too. So, now let’s see businesses pay extra attention to the customer acquisition or they like retention of loyal customers. Good luck!
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