What is Customer Retention?
Why is customer retention important?
What is customer retention rate?
What is attrition (churn) rate?
7 tips to improve customer retention
1. Use case studies and testimonials
Share case studies that reveal your service or product’s impact and style of communication combined with the results you achieved for customers. Additionally, sharing detailed testimonials from other customers would also strengthen your point.
2. Make positive memories memorable
People tend to remember negative memories more vividly, compared to positive ones. So focus on the positive experiences of the users and create a story of success and positive emotions for the user to remember your brand.
3. Ask for feedback
Sounds easy, but most of the business do not ask for feedback, instead they only focus customer experience once a problem gets vocal by a customer. A better approach would be being proactive and tracking customer experience by asking the right questions, giving out small surveys to users or tracking some key metrics.
For example, one proactive way to ask user feedback is to ask for a review of your app. With Countly Star Rating plugin, it is super-easy to collect 1 to 5 point based star rating from your mobile app, which can be visualised in a cumulative and time series report.
4. Take a look at the customer lifecycle
Have you ever taken a close look at how many emails a customer receives, from who and how frequently? What was the last email the customer get? Mapping out the communication to the user helps you understand the perspective of the user, whether the user received enough emails about your business, from correct channels, or getting too many emails which could be considered as noise.
5. Build a customer loyalty program
One of the best ways to improve customer retention is to build a loyalty or rewards program. This program may include bonus points, gamification tactics or some user-generated content for the users.
6. Build a referral program
In addition to the loyalty program, it might be a good idea to build a referral program for your users. You can tune your referral rewards in order to increase or decrease the benefit for the users to adjust their incentive.
7. Make it personal
In a study from the Journal of Applied Social Psychology, researchers revealed that waiters and waitresses could increase their tips by 23% by simply returning to tables with the second set of mints or candies. The conclusion is that this creates a personalized experience, which results in more tips for the waiters and waitresses. So you can think of personalizing your product or service in some ways to improve customer retention.