Customer retention refers to the strategies and efforts employed by a business to keep existing customers engaged, satisfied, and loyal over an extended period. It is a critical aspect of customer relationship management (CRM) and plays a fundamental role in sustaining a company’s long-term success. Customer retention is typically measured using retention rates, which indicate the percentage of customers who continue to do business with a company over a specified time frame. Customer retention strategies can be derived from and include the following:
– Customer Satisfaction Surveys
– Personalized Customer Experiences
– Effective Customer Service Through Optimized Agent Experiences
– Loyalty Programs
– Regular and Frequent Communication
– Quality Products and Services
– Feedback and Improvement
– Community Building
– Churn Analysis
– Competitive Pricing
– Retention Marketing
– Data Analytics
More Customer Retention Resources for Call & Contact Centers
The companies that excel at customer retention are constantly looking for ways to add value. But adding value doesn’t look the same from one customer to the next.
Use the data in your CRM to analyze your customers’ needs—their most-used features, their biggest pain points, their most frequent support inquiries, and so on—and put this intel to work to create value-add opportunities specific to the customer.
Customer acquisition strategies are tactics deployed by businesses to attract new customers.
Customer acquisition strategies can encompass many things from promotional omnichannel campaigns to targeted ad placements for specific products that appeal to select demographics and markets. They differ from customer retention strategies only in the fact that they’re meant to bring in new clientele as opposed to upsell or grow the relationship with existing customers.
The first source of CX data should be your customers themselves via feedback surveys. According to a study by the global business research firm Gartner, customer feedback can increase the success rate of upselling and cross-selling efforts by 15 to 20% while decreasing customer retention costs by as much as 25%. Net promoter score (NPS) and customer satisfaction (CSAT) score are two useful types of customer feedback to actively gather and analyze.