#21 - 5 Sure Shot Ways For Customer Retention

Welcome to our series, OMG :  One Metric for Growth where we dive deep into real-life examples of how one metric helped an organization to grow their business. Today's Metric for Growth is :“Customer Retention Metrics” 📈

Why is Customer Retention important?

Every entrepreneur will agree it is not easy to gain a customer. Apart from an excellent product or service it takes marketing, good relationships, better services, competitive advantage, great reviews to gain customer loyalty. And once the customer enters your company’s ecosystem, the last thing you want is to lose them.

That is where customer retention comes into action. Often companies tend to ignore the existing ones, in the race of gaining new customers.

Customer Retention Rate:

Customer retention can be bifurcated into 3 parts.

1. The customers who continue to buy from us each month / year depending on frequency of our product / service.

2. The customers who continue to buy each month but don’t buy many products consistently.

3. The customers continue to buy each month, but have stopped buying a few product groups.

A standard customer retention rate differs from industry to industry. You must bring context into the matter and evaluate how you are doing and what your goals are. Regardless of your retention rate, there is always room for improvement. An increase in customer retention rate will automatically lead to enhancement of business.

5 Sure Shot ways for Customer Retention :

1. Good CRM / BI

CRM [Customer Relationship Management] / BI (Business Intelligence) software helps companies to improve their productivity and gain customer satisfaction.
Understanding each customer individually helps to increase sales and the salesperson with the help of the gathered data can provide specialized assistance to the customers as per their need. This all can happen when the CRM / BI is efficient. A good CRM / BI helps a lot in retaining customers.

2. Smooth Boarding Process

First impression is indeed the last impression. Customers will always, by default, remember your brand by the first experience they had. 70% of buying experiences are based on how customers feel they are being treated. And if it is positive then they are more likely to stick around and recommend to their near ones.

A good onboarding process can set you up for successful years. It should be without any fraction, hands on and personalized.  “Retention is the single most important thing for growth” Alex Schulz

3. Personalization For Existing Customers

Make your customer feel valued by wishing them on their birthdays, anniversaries, establishment day of their organization. Small gestures like Thank you notes on the milestones and making them a part of celebration goes a long way.

Also, a personalized e-mail offering them exclusive discounts or vouchers on a certain amount of shopping, offering them free shipping and returns are a few things that can win your customer’s heart forever.

4. Pay Attention to Feedback

When you understand what customers likes/ dislikes are, you can change your approach to meet their needs in a better way. There are several customer templates available to gain feedback. NPS (Net Promoter Score) survey results correlate positively to retention. It is a metric for the assessing of customer loyalty for a company’s brand, product, or services.

While it is essential to get customer’s feedback, it is also important to solve any queries raised in it. A quick reply and immediate action are all it takes to be in a good book of customers.

5. Out of Sight, Out of Mind

You must continue marketing your product to the customer once he bought it. Inform them with the latest updates, promotions, reward programs and other content to help them know more about your product.  

To stay relevant longer, you must constantly remind your customers about your product via any medium. Every team member keeping in touch regularly with customers other than business will also help to improve relationships and gain more insights.  

In this highly competitive world, you must maintain sight of your customer. Always remember a loyal customer is a brand ambassador of a product.

Whenever You are Ready! 🔑  

Your metrics don't just reflect the past; they lead the future.

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