Customer retention is arguably one of the most important issues facing most businesses today. However, many companies are choosing to foc...
Customer retention is arguably one of the most important issues facing most businesses today. However, many companies are choosing to focus on customer acquisition. Why? Because, much like in our social lives, nurturing relationships is difficult!
However, some companies have mastered the process. Some of these are giant companies that have been around a long time, and some are newer on the scene. Either way, the companies in the article on customer retention have it down to a science. More on that later.
How do you calculate your company’s customer retention rate?
Retention rate examines how many customers a company is able to keep over a given period of time. This can be calculated by measuring how many customers your company has at the end of the period minus any new customers. That number is divided by the number of customers you started with, then multiplied by 100. The formula will look something like this:
How to make your customers stick around?
There are many different ways that companies can increase customer retention, but most of them revolve around building genuine relationships with your customers. The below infographic details some major strategies, but we’ll cover a few of our favorites in more detail.
Companies that excel at customer retention know how to create a community of advocates for their brand. Wholesome Culture, a clothing company that promotes a plant-based lifestyle, has cultivated a fiercely loyal Instagram following by posting fun animal-friendly memes, plant-based recipes and images of nature mixed with the occasional product photo. They are selling without trying too hard.
It’s also important for companies to make their clients feel valued. For example, Taco Bell runs a campaign called “Steal a Game, Steal a Taco” that gives out free tacos whenever a team in the NBA finals steals a game. This reminds their fans that they care while giving them an excuse to pop into a Taco Bell location (and likely buy more tacos).
Take a look at some of the strategies employed in an Infographic below and think about how your company can implement something similar. What can you do to learn about and connect with your customer base?
However, some companies have mastered the process. Some of these are giant companies that have been around a long time, and some are newer on the scene. Either way, the companies in the article on customer retention have it down to a science. More on that later.
How do you calculate your company’s customer retention rate?
Retention rate examines how many customers a company is able to keep over a given period of time. This can be calculated by measuring how many customers your company has at the end of the period minus any new customers. That number is divided by the number of customers you started with, then multiplied by 100. The formula will look something like this:
- Retention Rate = [(End Customers – New Customers)/Start Customers]*100
How to make your customers stick around?
There are many different ways that companies can increase customer retention, but most of them revolve around building genuine relationships with your customers. The below infographic details some major strategies, but we’ll cover a few of our favorites in more detail.
Companies that excel at customer retention know how to create a community of advocates for their brand. Wholesome Culture, a clothing company that promotes a plant-based lifestyle, has cultivated a fiercely loyal Instagram following by posting fun animal-friendly memes, plant-based recipes and images of nature mixed with the occasional product photo. They are selling without trying too hard.
It’s also important for companies to make their clients feel valued. For example, Taco Bell runs a campaign called “Steal a Game, Steal a Taco” that gives out free tacos whenever a team in the NBA finals steals a game. This reminds their fans that they care while giving them an excuse to pop into a Taco Bell location (and likely buy more tacos).
Take a look at some of the strategies employed in an Infographic below and think about how your company can implement something similar. What can you do to learn about and connect with your customer base?
![Everything about Customer Retention Strategies, Formula, and Tips [Infographic]](https://i.imgur.com/B6FrGnN.jpg "Everything about Customer Retention Strategies, Formula, and Tips [Infographic]")
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