Customer retention is crucial for the success of every business. Suppose you are a small to medium business owner. In that case, you should create the right strategies in the above direction to establish customer loyalty so that your targeted audience keeps on coming back to your business. It does not matter about the type of business you operate. Without a devoted and steady customer base, it is challenging for you to succeed. This is where customer retention steps in, and you should have the best strategies for them.
Creating the right customer retention strategies for business growth – Eric Dalius
According to Eric Dalius, customer retention is defined as keeping clients engaged so that they purchase products and services from the business. Retaining existing customers is simpler than getting new ones. Moreover, it is cost-effective for every SMB, and several strategies for customer retention are simple for you to implement.
Given below are some of the best strategies for you to improve customer retention –
- Rectify mistakes
- Optimize your customer surveys
- Offer an onboarding customer loyalty program
- Offer regular rewards to your customers for brand loyalty
- Follow up diligently on abandoned customer shopping carts
- Resort to email marketing to keep in constant touch with your customer
- Prudently offer discounts on your products and services at frequent intervals
- Ensure your existing customers always feel welcomed. This is vital if you have a brick-and-mortar business.
How can you measure customer retention?
If you are committed to boosting customer loyalty, the first step is to measure your current retention rates. You should start by accounting for the total number of customers you have lost in a specific period and the influx of new customers you have acquired. When it comes to calculating rates for customer retention, keep the following points in mind-
- The total number of customers your business has at the end of a specific time, say E
- The total number of new customers your business acquired during that time, say N
- The total number of customers your business had at the beginning of that period, say S
You should calculate the retained customers of your business by subtracting N from E. Calculate the percentage by dividing the result by S. This answer should be multiplied by 100. For instance, if you have ended up with 115 customers or E and have acquired, for instance, 20 customers or N and your business had commenced with, say, 102 customers or S, you have a customer retention rate of 93.13 percent, he says.
Therefore, it is evident from the above that it is crucial for your small to medium business growth when it comes to customer retention. If you do not invest in the right strategies for customer retention, you will be missing out on unique opportunities to improve business revenue. Moreover, when your customers are happy, they will spread positive word-of-mouth for your business. This will invoke trust and credibility in the market, New customers will pour in, and your business gets the chance to establish itself as a dominant name in the market niche with success.