Customer retention is a company’s ability to keep its customers coming back or continue paying for their products or services. Customer retention is just as important as acquiring new clients, if not even more vital in achieving growth and stability.
6 Strategies For Better Customer Retention Rates
Track Customer Retention Rates
As with most business elements, customer retention can and must be tracked and calculated. Doing so will give you a better idea how you’re doing and how you can improve. A simple way to calculate your retention rate is by subtracting the number of new customers from the total number of customers you have for a period of time. Then, divide that by the number of customers you had at the beginning of that period. Use this figure to keep track of which strategies are working.
Consistent good quality of products and services is a given for acquiring and retaining customers. However, it’s also important to stay consistent with your methods and values, for instance methods for buying your products. If changes must be made, make sure to communicate these clearly with clients so as not to put them off.
Build Good Customer Service
Good quality customer service foster positive impression on a company, which encourages clients to keep coming back to you. Build trust by maintaining a good customer service.
Listen To Customer Feedback
Ask clients for feedback and implement their suggestions as best as you can. This shows that you prioritise their interests and providing quality services.
Loyalty programs reward clients with deals and gifts for buying a certain amount or using a service for a period of time. The value this offers alone encourages clients to continue using your products.
Engage With Them On Social Media
Use social media to build relationships and keep your brand visible. Show your customers that you care about their advocacies, about them, and are dedicated to serving them. You can communicate all these on social media.