What Is Your Customer Retention Rate?

To succeed, your business needs to retain customers.

How? By consistently delivering great levels of customer service paired with quality products and services.

Customer retention is measurable and these questions are the starting point:

• Do you know what your customer retention rate is?
• What percentage of your customers leave each month?
• Do you know why they leave?

Fundamentals of Client Retention

THESE ARE THE FUNDAMENTALS OF CLIENT RETENTION THAT ARE KEY TO MAKING SURE CUSTOMERS FEEL VALUED (THIS APPLIES TO B2C AND B2B)

Honesty and transparency during the sales process

• Don’t oversell or omit information when presenting your products or services

Execute a clear and detailed agreement that outlines each party’s responsibilities

• This sets the expectations of the relationship and prevents surprises

An onboarding process that reinforces what you will deliver

• A plan of action, a thank you note or gift and a kick-off call will make the customer feel appreciated and sets the tone for the relationship

Provide a personalized customer experience

• Each customer is different and your ability to address their needs is crucial

Ask for feedback

• Asking for feedback in person or through surveys will let you know what customers think and make customers feel heard

Regular communication

• Most customers leave for one of two reasons. Either the product or service is not delivering what was promised, or there is a feeling of perceived indifference

IMPROVED CUSTOMER RETENTION RATES CAN BOOST PROFIT BY 25%

Perceived indifference is the one item that could be hard to assess or measure. That indifference is a feeling the customer experiences when they feel unappreciated and taken for granted. That happens when there is no communication or reports, there are no check-in calls, or when they are just paying for something that is not delivering what they expected. In other words, they feel that the company does not care about them.

That’s when they decide to leave.

According to Bain & Company, a 5% increase in retention generates a 25% boost in profit. That’s because customers who continue using your product or service over time are more likely to trust and think highly of your company. They also become some of your best referral sources!

How much effort are you placing in customer retention?

As you consider your goals for 2023, let’s explore the best marketing strategies and tools to improve your customer retention.

I’m a phone call or email away.