What is Customer Retention?

Question

Accepted Answer

Custom retention refers to everything your business does to keep customers coming back to you over and over again. These are considered your customer retention strategies. Customer retention also refers to the overall ability of your business to attract previous customers back to purchase again.

Customer Retention Rate

This metric is your customer retention rate and it measures how well your business is able to retain customers over a certain time. The higher your customer retention rate, the more customers return to purchase or interact with your business again. A low customer retention rate indicates that customers only tend to buy once from your business and do not tend to return. Acquiring new customers can be 5 to 25 times more costly than retaining existing customers. Because obtaining new customers costs more than retaining and selling to current customers, it makes sense to ensure your business is set up to offer an experience that will bring customers back again and again. Not only does this increase your loyal customer base, but it also ensures your marketing budget is spent more effectively. It makes more sense to have a budget for customer acquisition when you know you will be able to retain those customers over time and that it will result in additional revenue. That’s why it’s good business to improve customer retention.

How to Improve Customer Retention?

Customer retention is all about the experience a customer has with your business. Meeting or exceeding customer expectations while also reducing any friction or frustration is the key to a good experience. Identifying your ideal customer’s key pain points and values and then delivering an experience that at least meets their expectations helps create a good foundation. You’re more likely to provide a good experience and improve customer retention by striving to exceed your customers’ expectations. Pairing a good foundation with customer retention strategies can help keep your brand top-of-mind and relevant for customers so they refer others to you and come back to you when it’s time to purchase again.

The Mind Blog

3 Reasons Why SEO is a Great Investment for Your Business

How to Prep Your Business for the New Year

How to Sort Biblical Scriptures Programmatically in WordPress

How to Create a Web Accessible Modal Window with Magnific Popup

How to Randomize ACF WordPress Plugin’s Repeater Fields

8 Customer Retention Strategies to Benefit Your Business