5 Impactful Customer Retention Strategies to Snag 

As a business owner with passionate ambitions, it’s wise to attach a welcoming atmosphere to your brand. Long-term relationships with existing customers are essential for earning repeat business throughout the year. These ongoing interactions are part of customer retention, the ability to keep customers hungry for more. 

Some new customer introductions are destined to become one-and-done encounters, but if the products and services you provide can lead to additional business, you need to leverage a good customer retention strategy. Making efforts to captivate existing customers can lead to significant wins well into the future.

For one thing, many sources claim that it costs at least 5x more to attract new customers than hang onto existing customers. Not only do repeat sales lead to more reliable revenue, but fans of your brand help strengthen its recognition with new audiences. Word of mouth is potent marketing, especially when it comes from individuals within someone’s circle of trust. 

Invesp uncovered that 90% of people are more likely to make a purchase from a brand recommended by a friend. Plus, developing ongoing relationships with customers provides far more opportunities to gather feedback. This all adds up to a multitude of reasons to latch onto the customer retention programs that keep your business durable.

How Do You Measure Customer Retention?

If you’re wondering where you stand with repeat business, it’s a good time to evaluate your customer retention rate (CRR). Your CRR increases anytime a previous customer purchases another product or service from your company. 

To make this calculation, you’ll need some customer data during a specific time frame. Take the number of customers at the end of the chosen time period and subtract the number of new customers acquired within the same time period. Divide the result by the number of customers at the beginning of that time period. Finally, multiply by 100 to get your percentage.

Results are rarely static and can change when applying different time frames to the equation. For the most accurate data, calculate your CRR regularly and analyze it throughout the year. Do different seasons have a significant impact? Are new or adjusted marketing efforts influencing your numbers?

Other ways to determine whether your customers are sticking around include evaluating your churn rates, time between purchases, how often items are returned or exchanged, and how often the same customers make additional purchases. Tracking this is a lot easier when your customers share purchasing habits via membership accounts and other digital footprints. 

You can also gain valuable information by surveying your customers about the transactions they’ve made with your company and the likelihood that they’ll return soon. While the numbers volunteered through questionnaires may lead to estimates rather than precise input, the data gained can still tell you a great deal about customer satisfaction.

5 Customer Retention Tips for Small Businesses

Now that you know why keeping customers in your corner is so valuable, let’s take a closer look at some of the best customer retention strategies to encourage repeat interactions.

1. Prioritize Communication and Convenience

When it comes to positive customer interactions that retain customers, we’ll always top the list with exceptional communication and convenience. 

Adopt every communication channel your customers crave, including phone, text, webchat, and email. Be sure to reach out to your customers with regular interactions that keep your business on their radar and invite them to stop by your website or physical storefront. But don’t drop the ball along the way with communication options that lead nowhere. Consistent and timely responses show your commitment to quality care.

You’ll also score big by implementing convenience throughout the customer journey. Each task along the way should be simple to complete with zero resistance. You don’t want potential customers walking away unless there’s a genuine mismatch between your offerings and their goals. Prioritizing a smooth user experience on your website, including straightforward navigation and breezy checkout processes, will help keep customers on the page.

2. Leverage Unique Personalization

If you’ve ever been a regular at a favorite takeout spot, you know that ongoing customer interactions develop relationships between businesses and individuals. As you become acquainted, the entire experience starts feeling more personal and you may even enjoy those brief exchanges.

This is the comfort level you should strive for with your own customers. Keep your communications light and friendly, making every customer feel special. Try customizing your messaging and sending birthday texts if your customers have opted into that kind of communication. The goal is to feel more human and relatable, a genuine helping hand when customers face challenges. 

Many consumers also appreciate personalized recommendations based on previous purchases. According to data from Google and Greenberg, 61% of consumers actually expect brands to use their preferences to customize their experience. Personalization can lead to the right recommendations that benefit each user while improving your sales.

3. Start a Customer Loyalty Program 

Customer loyalty programs are a great way to connect with your audience and encourage repeat business by offering enticing incentives. Choosing the benefits of your loyalty program requires strategic decisions that align your brand with your most loyal customers. What motivations can you offer?

Examples of loyalty program perks that get clicks:

• Receive a reward at certain spending milestones
• Earn a discount after a set number of unique transactions
• Member-only discounts, freebies with purchase, and birthday gifts
• Advance notice and/or early access to sales and new offerings
• Special items and events only available to members

Bond’s Loyalty Report showed that 71% of members said loyalty programs are a meaningful part of their relationship with a brand. Plus, technology has made it easier than ever to implement effective loyalty programs, whether using mailing lists, text messaging, or a custom store app. 

4. Create a Feedback Loop

Well-timed communication makes it easier to create an effective feedback loop. You need to strike when the iron is hot to gather insight into the customer experience while they’re still engaged. 

Plan to collect customer feedback through surveys and reviews immediately after a transaction, while your business is still fresh in their mind. This will lead to the most accurate impressions, so you’ll know whether you’re meeting customer expectations and which areas need the most improvement. 

If you’re not gaining as much information as expected, consider streamlining surveys with a few simple questions that don’t require a significant time commitment. You can also help guide customers through reviews by asking specific questions that drive the enlightening details you desire.

5. Focus on Education

Show your audience that you know what you’re talking about and become a trustworthy resource they can count on. A brilliant content marketing strategy can push your blog or social posts toward the right search engine inquiries. This can lead to return visits from the same users who could later turn into customers.

Gaining traction requires committing to regular updates. This boosts your visibility and shows that you’re still relevant. Furthermore, a Demand Gen survey reports that 71% of respondents consumed blog content during their buyer journey, so dismissing this marketing tactic could be costly.

Position your web presence as the go-to hotspot for everything your customer needs to know about how your products tie into their interests. Providing free high-quality information is an effective marketing strategy that builds relationships over time with readers and viewers.

You’ll want to promote your paid offerings somewhere in these educational pieces as a call to action (CTA) whenever possible, so potential customers can confidently choose to move forward with a purchase that meets their needs.

Podium Helps Businesses Improve Customer Retention

Ultimately, your customer retention strategy is about keeping your customers happy. You get what you give! And while customer acquisition remains vital to healthy, thriving businesses, it’s clear that successful marketing plans drive profitable customer retention rates. 

An excellent way to get your customer retention programs into alignment is by utilizing tools and resources like Podium. Our platform neatly packages an assortment of helpful tools so you don’t have to hunt for what you need to get the job done well.

Podium makes connecting with customers effortless so you can improve communication, foster lasting relationships, and grow strong. Ready to see what all the hype is about? Start a free 14-day trial today.