If you want to attract a new client, you need to spend a fixed amount of money on his rent. In order to recoup the price of this lease, you have to keep working with this client for as long as you can. Any entrepreneur knows that it’s easier and cheaper to retain existing customers than to develop a new base. Therefore, successful customer retention strategies are major priority for every business. 

In this article, we’ll talk about how to calculate the customer retention rate (CRR) and develop successful solutions for you to maintain long-term relationships with your customers.   

Returning clients are the basis of successful business. According to Harvard business research, retaining repeat customers by 5 % increases profits by 30-97% and this is a significant amount to come to grips with retention, right? 

Every time you lose customers, it plays into the hands of your competitors. According to well-known marketer Neal Patel, every lost client costs the company an average $242. And more than 60% of departed clients are more likely to have moved to a competitor rather than stopped using the product. 

Customers can leave for a wide range of reasons, starting with personal to those that you can prevent. But the most common reason is your indifferent attitude to them. Among other answers is dissatisfaction with your product or services. 

CRR is a customer retention rate, which shows what percentage of clients stayed with you after a certain period of time. There is a special formula to calculate the figure. There isn’t an ideal CRR. Comparing indicators by segments and periods, you calculate this rate for yourself. 

Effective ways to retain customers

A customer retention strategy is a set of tools that a business can use to increase revenue and number of returning customers. They allow you to capitalize on existing clients. 

1. High-quality product and services is the most common way to retain a customer. Not every client is ready to complain about the poor quality of service. Out of 30 people, 28 are likely to leave silently, and only 2 will let you know about the problem. You need to take into account each appeal and improve the quality of the product. 
2. Connect your client emotionally. Support, communication, understanding the client are the key points of this method. Understand who your customers are and develop brand values to match your customer’s needs. 
3. Provide ways of quick customer service. Better when you can anticipate the problem and improve your service in advance. But not all issues can be resolved automatically. As soon as you find out that you have bad customer experience, solve the problem immediately. 
4. Loyalty programs. Every client loves bonuses and discounts. You can accrue points for a purchase, offer discount on next orders, give promo codes in honor of the client’s birthday. This method is simple but very effective. Regular customers appreciate the individual approach and loyalty. 
5. Email marketing is a universal tool that works brilliantly in order to retain customer. Delegate this part of work to outsourced customer support services in order to effectively conduct mailings with products suitable for your customer, give bonuses, report sales, remind about loyalty programs, compile product selections. 
6. Social media. This method will allow you to involve more customers, so create groups on social networks. Here you can blog, answer questions, post informational texts important for buyers. All major companies have pages on Instagram, Twitter, Facebook which confirms importance of constant contact with customers. 

Together, these methods will allow you to always be on your toes, retain regular customers and develop new contacts.