Customer Retention Strategies Guide
⏱ Reading Time: 6 minutes
Are you only focusing on acquiring new customers? If yes, you are moving in the wrong direction.
To keep your business afloat, you should focus more on retaining your existing customers. Rather than attracting new ones. If you keep your customers coming back, you will be rewarded with higher ROI. Also, you will cut your costs in 5-25 times.
Do you want to learn more about the customer retention strategies that work? Let’s get started!
The Importance of Customer Retention Strategies
If you still think that you don’t need customer retention strategies to succeed in the market, you are wrong. Take a look at the following statistics. You will understand why you should do your best to keep your customers coming back:
- The probability of selling to an existing customer is higher than 60%. The chance of selling to a new customer doesn’t exceed 20%.
- About 65% of your business comes from existing customers.
- Businesses that do not have strong customer retention strategies lose about 15% of their customers annually.
“Today, retention is king, and you should accept this fact. To achieve results in a highly competitive market, you should learn how to engage your customers and how to make them loyal to your brand,” says Emilia Dean, a digital marketing manager at TopWritersReview.
3 Best Customer Retention Strategies to Boost Your Business
1. Provide Educational Content
Modern customers are looking for support and qualified assistance. They want companies to understand their needs and to help them with making well-informed buying decisions. Customers expect that brands will provide them with relevant, useful, and, most importantly, valuable content.
So if you want to boost customer retention, you should focus on building a strong content marketing strategy. Let’s consider an example to understand how a good content marketing strategy looks like.
DS Laboratories is a company that is specialized in hair regeneration and cosmetic dermatology. It creates educational content, including articles and online assessments, to educate customers not only about the branded products but also about hair loss problems and existing solutions.
Picture 1. DS Laboratories concept
DS Laboratories doesn’t try to convince customers that they should keep buying and using branded shampoos and conditioners for years. Vice versa, the company lets customers learn more about their hair loss issues and helps them choose the products they do really need.
Take a look at the following screenshot. Here are a few emails that DS Laboratories sends to its customers.
Picture 2. DS Laboratories email examples
As you can see from the subject lines, all the emails contain educational, useful content. DS Laboratories doesn’t send emails with the messages like “Sale ends tonight: up to 50% off”. Why?
Because the cosmetic company doesn’t want customers to buy the products they do not need or the products that do not suit their needs perfectly. DS Laboratories understands how important customer retention is.
The company creates high-quality content to optimize the consumer decision-making process. DS Laboratories strives to ensure that everyone who buys a shampoo or conditioner will not get disappointed with the results.
Whatever industry you work in, you can boost customer retention with the help of a strong content marketing strategy. So we highly recommend you to revisit your current strategy and see what you can improve.
2. Show That You Care
Do you want to turn your customers into brand advocates? Find a way to show your customers that you really care about them.
Let’s take a look at a strategy that Delta Airlines uses. This strategy is all about care, support, and special attention to every customer.
If a child loses a toy during the flight, Delta does its best to find a toy and return it to the owner. Here is an example.
Recently, a little girl Kenley has lost a very special doll – the doll that has a recording of her dad’s voice inside – when flying Delta with her mother. The news about the lost doll was shared on Twitter.
Picture 3. Lost toy example
The Delta Air Lines reacted to the problem immediately. Employees of the airport found a doll and promised to send it back to a girl.
Picture 4. Delta Air Lines answer
In a few days, little girl Kenley not only got her favorite doll back but also was gifted with a new toy – a small Delta’s plane.
Picture 5. Delta Air Lines act of kindness
That’s a great example of how Delta uses social media to emphasize a fact that it values every client. And that is also ready to help in any situation.
If you doubt that this small act of kindness has helped the company to improve customer loyalty, take a look at the following tweets. People do appreciate what Delta did, and they are truly loyal to the brand.
Picture 6. Social media reactions
If you want to retain your customers, you should do the same thing Delta did. You should find a unique way to convince your customers that you care about each of them. And also, you should use social media to inform your target audience about your small acts of kindness and support.
3. Fight Till the End
Now let’s talk about how to retain customers who have already decided to stop using your product. Let’s consider Skillshare’s strategy as an example.
As you probably know, Skillshare is an online learning platform that allows users to learn from educational videos. New users are eligible to use a platform during the two first months for free. Once the free trial ends, users pay a $15 fee monthly.
Skillshare designed an effective strategy that allows retaining those customers who have enjoyed the free trial but made a decision to unsubscribe from the platform. Once a user clicks the “Unsubscribe” button, he sees the following message.
Picture 7. Skillshare system
The system reminds a user that he hasn’t completed a class yet and that he still has two days to complete it. Thanks to this notification, most of the users decide not to cancel the subscription. They want to finish what they have already started. In most cases, it takes people more than the days left to complete the class, so they have to pay a fee.
What about the users who click “Continue with cancelation”, they see another notification. The system offers them to keep using the platform for free for a month more. And since people do love freebies, most of the users do not finish the cancelation process.
Skillshare “fights till the end” to retain its subscribers. The company uses each and every opportunity to remind people why they have started using the platform and what they have already learned using the platform.
And you know what? This retention strategy works. The users who were just one click away from plan cancellation, return back to the Skillshare. So if you want to take your business to the next level, consider using this retention strategy.
Customer Retention Strategies Wrap Up
All described customer retention strategies are effective, and they work. So if you want your business to be successful in the long run, don’t hesitate to use these strategies.
Just keep in mind that every company is unique. And you need to adjust the chosen strategy to peculiarities of your business model and your products.
Daniela McVicker is a passionate digital marketer. She is interested in everything related to SEO and blogging. Daniela collaborates with multiple businesses including paper writing websites where she shares her experience and helps brands make their names in the online world.
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