Eldon Broady

Increase Profits with an Effective Customer Retention Strategy

With the array of marketing opportunities and marketing analytics available to even the smallest businesses, it can be easy to get caught up in getting new customers. But focus too much on new customer acquisition and you might neglect one of the most important foundations of any successful company: your current clients. Customer retention is extremely important and enterprising businesses should strive to create an effective customer retention strategy.

In this article, we'll outline some successful customer retention tactics.

Why Customer Retention Matters

According to a study by Bain & Company, increasing your customer retention rates by just 5% can increase overall profits by 25-95%. This is a huge jump for just a small increase in customer retention. Existing customers also spend more and are much more likely to lead to a conversion. There are plenty of convincing statistics out there that should make any CEO value the power of customer retention tactics. Now that we have an idea of just how important customer retention is, let's look at some ways you can improve your strategy.

Customer Retention Tactics

The foundation of any good company includes two main factors: great products and even better customer service. This isn't a secret formula; it's what has been proven again and again to be the best way to keep customers. If you have bad reviews in either of these areas, those should be your first customer retention tactics to implement. Once you've reached a point where your customers are very happy with what you're offering and feel like you're delivering an amazing customer service experience, you could look into offering a loyalty program.

Loyalty programs are one of the most common customer retention tactics for a reason. Customers like to be rewarded for their loyalty. They like to be shown that you appreciate their business. You can also implement an email list for your customers that want to subscribe. By sending engaging emails with information and sales promotions, you can continue to entice your existing customers to come back.

In short, there are no magic customer retention tactics out there. It all comes down to you respecting your customer base and implementing good practices that they'll appreciate.

Author Resource:

Eldon Broady writes about customer retention and customer success tools. You can find his thoughts at customer success platform blog. Click here for more information on customer success tools.