What are customer retention strategies and why they are so important

Your Guide To Customer Retention Strategies

Customer retention strategies include recognizining the mistakes of many companies, due to which they lose a huge part of their profits, is the opinion that a good, high-quality product is a guarantee that customers will turn to them again after the first purchase or ordering a service. A marketing strategy that only focuses on attracting new customers will never generate the expected revenue for the company. The marketing plan should include activities to retain existing customers. Indeed, according to various sources from reputable sources, attracting a new customer costs a brand five times more than retaining an existing one.

According to the research, a customer who has made a purchase twice in the past is 9 times more likely to convert. This is why it is so important to work with existing customers. Customer churn is inevitable in any business, but minimizing it is the main task. You can solve this problem with the help of different customer retention strategies.

The retention strategy is the percentage of users who continue to use the service / buy the product within a certain time frame. The opposite concept is the churn rate. For example, if your retention rate is 15% in 30 days, then 85% of buyers have left.

This does not mean that they will not return in the future, it all depends on the service / product provided, for example, if you sell only refrigerators, the chance that the same user will contact you in the next 5-10 years is extremely small.

Yes, retaining a client is not an easy task. According to Todd Grennan, Chief Content Producer at Appboy, an average of 75% of mobile app customers do not return the day after the first interaction. And in retail, according to statistics, the average retention rate is only 63% due to the large number of competitors. At the same time, the maximum retention rate is 84% in the media industry.

Developing marketing plans to retain existing leads is one of the main tasks. The strategy should be clear and consist of specific activities. Why is it so important to minimize customer or customer churn? Here are a few arguments:

  1. According to Invesp, in 60-70% of cases, the sale of goods / services to existing customers ends with success. And the probability of selling new is only 5-20%.
  2. About 70% of respondents surveyed by Invesp agreed that it is easier to retain a client than to attract a new one.
  3. Do not forget about the effectiveness of word of mouth, one client can bring in several more if you enjoy interaction with the brand.
  4. Attracting a new customer costs, on average, 5 times more, than retaining an existing one.
  5. According to Walker, the author of a sensational customer orientation survey, about 80% of the profit comes from 20% of existing customers.

An existing client already knows what you can offer him and, if he returns, he is happy with it. He does not require a lot of time and attention, just a little encouragement of his loyalty and gratitude to him for the fact that he is still with you. He does not need over the schedule and bright advertising; he does not need to explain anything, and also to tell what the company is like. The buyer is already with you. He already knows everything about you.

We understood why it is so important to retain the client. Now let’s talk about how to do it.


Establishing an emotional connection

Build an emotional connection with the customer, make their experience and impression of interaction with your product pleasant and memorable. It is important to consider everything from a user-friendly website interface to fast delivery. Every time they make a purchase, the customer must feel that they are being cared if you want positive customer feedback.

Experience shows that companies that manage to implement strategies to increase customer satisfaction and forge strong emotional bonds often outperform direct competitors.

To successfully implement such programs, you need to know exactly what your customer needs. You need to study not only the target audience but also have an accurate portrait of your buyer. Marketing aimed at meeting his needs will bring great results at the lowest cost.

Instant response when communicating with customers

The client is the primary and free source of information. Sometimes companies spend significant sums on analyzing their site, searching for errors in navigation, interface, and map. And very often it is enough to listen to what the clients say, what questions they ask. After all, the site is not created for you, but for them. If different buyers often ask the same question, then it must be addressed immediately.

The right thing to do is to allow customers to ask questions comfortably and leave complaints. Each such message is a bell that the client is not satisfied, which means that not only he can leave, but a new client, having reached the problem in the funnel, will leave the site or change his mind about ordering the service.

If the opportunity to ask questions and point out mistakes is not provided at all, customers will simply leave, and you will not be able to correctly assess the cause.

However, sometimes human resources are insufficient to provide quick feedback. The use of AI can help with this. There are many ready-made solutions that solve the problem and provide 24/7 support. Unfortunately, some of them are not available in all regions. If you come across such a situation, do not despair.

Loyalty program development

Do not think that if you offered your regular customers a 5% discount on their next purchase, then you have implemented a successful loyalty program. It should be built on the best interests of your customer.

If the audience is actively interested in your products or services, constantly monitors new items, offer them a discount for regular customers. Get them interested in newsletters about innovation in your industry.

Do not force customers to take certain actions before they receive a bonus. Offer a promo code for a discount right now. Create something like an elite club for your regular customers, please them with promotions and closed sales. In this case, you will be able to retain the client for several years, because each of us wants to be involved in something important, to feel special, belonging to a “special caste”.

Use all communication channels actively

Social networks, instant messengers, email campaign management platforms are channels that give you the opportunity to fuel customer interest constantly in your brand. The person feels that he has not been forgotten, he is important to you. Again, this allows you to receive feedback, to keep the emotionality of your communication at the desired level.

Be sure to respond to all messages. Pay special attention to questions, negative reviews. Correct mistakes constantly, because there is no limit to perfection.

Social media is an invaluable, inexhaustible source of information. By tracking the common interests of your customers, you can shape your blog content and notify you of new interesting articles on your pages. The constant presence of the brand in the life of the client keeps his attention. But here it is important to know when to stop. If you are too intrusive or there will be a lot of posts and letters, the client may leave you.

Social activity

People like it when a brand whose products or services they use has an active social position. The choice of its niche depends on the products or services provided by the company.

For instance, Lines.com shares regular updates on their Facebook page to keep their fans engaged.Posting on Instagram is also a proven tactic to keep a community involved and up to date with your products and campaigns. Nurturing the prospects is crucial to generate more engagement which ultimately leads to more conversions. 

You can also allow clients to become part of your program themselves. Tell them that the company will send part of the money they spent on the purchase to implement a particular program. But the choice of a niche is very important here. If you do not fall into the sphere of interest of your customers, some of them may leave the brand.

customer retention strategies - celebration

Honesty and meeting expectations

If a client at least once realizes that he was deceived or you allow yourself not to meet the expectations of buyers, consider that you have lost not only this buyer, but all those potential customers that he could have brought.

For example, if a product that a visitor wants to buy is not in your warehouse and is expected to be shipped in 2 weeks, please report it. There is no need to feed the client “breakfast” or not respond to his requests. In the event that you honestly explain the situation and offer a wait bonus, the visitor will wait. Moreover, the likelihood that he will become a regular, loyal customer will increase significantly.

Your main task is to make the client himself voluntarily want to remain your brand. Too aggressive advertising, constant imposing, too frequent presence is not quite the right way. Although there are niches where it can work. 

Keep an eye on customer retention rates

Constant tracking of this indicator makes it possible to analyze how effective the measures taken to retain customers are. You can calculate it using the formula:

(Number of clients at the end of the study period – number of new clients) / number of clients, at the beginning of the period) х100 = CRR (customer retention rate)

This figure should be above 35%, which means that all your programs are working. The higher the score, the better your programs. You choose the period yourself. It can be a month, a quarter, half a year, a year. But practice shows that the more often statistical studies are carried out, the fewer gross errors are allowed, and therefore it is easier to correct them. Since each implemented marketing activity is an expense, even if it is not significant, statistical research helps to save 


Programs that help implement customer retention systems

Today, many processes can be automated using special applications and programs. Almost every group has its own automation capabilities. The use of mobile applications will help businesses improve guest experiences through customer data analytics.

Customer Relationship Management

There are applications and programs that help automate email marketing, receive and track reviews. Other programs monitor the behavior of buyers on the site. They record from what source the client came, what pages he viewed, how he came to a purchase. It is very important to monitor repeated calls, to understand what exactly brought the buyer again.

Loyalty programs

There is special software that allows you to design and customize a reward system for your clients. Referral programs, rewards, bonuses – all this can be automated. If you do the collection of information and mailing by hand, this is an unreasonably large waste of time and resources.

But it is important to remember that there is no substitute for live communication. If the client feels that it is not a bot who communicates with him, but a living person interested in his questions and problems, loyalty will grow significantly.

Developing your existing customer base should be an important part of your marketing strategy. Loyalty, respect and brand love are the engine of word of mouth that can dramatically increase your bottom line.

Application and functionality of social networks and email

There are a lot of offers here. From built-in settings of well-known platforms for collecting information and targeted mailings to specialized applications. Pending emails and posts – you can find an app for almost any interaction path.

Effective channels

The main channels used, according to Invesp of audience retention and their use as a percentage:

And the table below shows the data on channel usage for audience acquisition / retention and their effectiveness as a percentage:


Most companies today rely on a pre-existing customer base for customer retention strategies. It brings in more profit and, according to Semrush, brings in about 68% of new customers. Therefore, do not neglect the tools to increase customer loyalty and retention.

In the absence of points of constant interaction with existing customers, they will feel that they no longer need your brand, and, no matter how perfect the product may be, they will be gone forever.

Start thinking about your loyal customer retention strategy today! Soon, you will be able to appreciate all the benefits of these actions, which are manifested in increasing your profits.

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