11 Customer Retention Strategies That Translate Into Lifetime Value

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One of the biggest mistakes businesses across the globe make is thinking that having a great product or service is enough as a strong customer retention strategy. Although it is only one aspect of marketing, retaining customers is a bitter truth.

It is just as important to keep customers as it is to get new ones because it costs five times more to attract a new customer than it does to keep an existing one.

Customer retention is a blend of art and science.

The goal is to maintain strong relationships with customers by putting in extra effort to exceed their expectations.

The science of customer retention involves understanding the customer journey, making sure there is consistent help available from all touchpoints, and providing your team with the tools they need to deliver an excellent customer experience.

Customer retention is seen as the biggest revenue driver by businesses that invest in effective retention marketing, according to KPMG.

So what does client retention mean? And how to retain customers with different relationship-building strategies?

What are some key concepts and examples to consider when building a client retention strategy to scale your business?

What is customer retention strategy?

Customer retention is the process of keeping customers satisfied and engaged with a company’s products and services. It involves creating loyalty and repeat business by delivering a positive customer experience at every interaction. The goal of a successful customer retention plan is to help businesses keep customers and how they contribute to the growth of the business.

Customer retention strategies are most successful when they begin from the very first interaction a customer has with your business. Continuing this relationship throughout the customer’s lifetime is key to customer retention.

The importance of customer retention strategies

What is the average amount that your clients spend during their time working with your agency?

The biggest takeaway from the research, published in the 1990 issue of the Harvard Business Review, can be summarized by an introductory paragraph:

If customers defect, or leave, it has a surprisingly powerful impact on the bottom line, or income. A service company’s profits can be more affected by factors such as scale, market share, unit costs, etc. than by other factors. As a customer’s relationship with the company strengthens, so does the company’s profits. And not just a little. If companies retain just 5% more of their customers, they can boost their profits by almost 100%.

How does that make sense?

The more satisfied a customer was with a service provider, the more likely the customer was to use the provider again in the future, according to the study’s authors.