Getting a new customer can be one of the best things to happen to a business, but having an existing one come back is even better.
Existing customers account for almost 65% of a company's revenue, making them an invaluable asset to a business’s long-term success. Keep your customers with these proven customer retention strategies in this first of a three-part series.
Consumer retention refers to a business's ability to keep customers coming back. Customer retention strategies involve various techniques that foster customer loyalty and ensure clients remain happy with the company's products or services.
A customer retention plan aims to improve customer retention and maximize customers' lifetime value (CLV) or the amount of revenue that can be earned from a customer throughout their lifetime. CLV increases the longer customers remain loyal to a company. .
It’s important to note that consumer retention and lead generation are two different strategies. Customer retention strategies focus on customers who have already purchased from a company. While it may seem tempting to focus solely on acquiring new clients, increasing repeat customers is equally important to accomplish long-term success.
Implementing customer retention tactics means providing more value for your existing customer base while extracting more value for your business in return.
The customer retention rate (CRR) is the percentage of customers a company retains over a certain period. The measure is expressed as a percentage. To calculate the CRR, we need to use the CRR formula and the following elements:
Depending on your industry, it’s ideal to aim for at least an 85% customer retention rate. But if you’re hitting at least 75% CRR, it’s a good sign that most of your customers highly value your brand and enjoy the customer experiences you provide.
Successful customer retention techniques involve exceeding customer expectations to a Ridiculously Good degree. In addition to boosting brand recognition and enhancing industry authority, customer loyalty is instrumental in growing a business’s bottom line. Understanding the link between improving customer satisfaction and the retention of customers is essential in designing the right loyalty programs for your business.
Here are some of the most effective customer retention strategies that work for businesses across industries:
For many businesses, implementing these strategies can be an overwhelming challenge. Fostering customer relationships can be a complex matter for the inexperienced, not to mention the amount of resources it takes to implement a single strategy successfully.
At TaskUs, we’ve established proven and effective strategies to boost customer satisfaction across industries. From delivering excellent customer experience in healthcare to supporting the largest e-commerce brands to scale their growth—no strategy is out of our reach when it comes to customer experience.
Recognized by the Everest Group as the World’s Fastest Business Process (outsourcing) Service Provider in 2022 and highly rated in the Gartner Peer Insights Review, TaskUs is more than capable of supporting the most disruptive brands across the globe.
References
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