30 Customer Retention Strategies Used by Top Companies
INFographic
Most business owners know that retaining customers is valuable, but just how valuable is it?
Econsultancy reported that winning a new customer costs a company five times more than retaining an existing one. Despite this, they found that most companies focus more on customer acquisition than customer retention strategies — 28 percent more.
So, why are so many companies overlooking such an important aspect of their business? Typically, it’s because they are so focused on new customers they forget to nurture the ones they already have. Here, we’ll cover 30 ways you can improve your customer retention rate, backed up by examples from companies who get it right. You can also skip ahead to our condensed visual below.
What is Customer Retention Rate?Customer retention rate measures the percentage of customers a company is able to keep over a given time period. Retention rate is often associated with churn rate, which is the percentage of customers a company has lost over a period of time.
Retention rate is a key metric companies look at to determine customer satisfaction. It’s calculated by measuring the total number of customers a company has and comparing that to how many are lost and acquired during a certain time period. You’ll need to look at three metrics:
Retention Rate = [(End Customers – New Customers)/Start Customers]*100
Econsultancy reported that winning a new customer costs a company five times more than retaining an existing one. Despite this, they found that most companies focus more on customer acquisition than customer retention strategies — 28 percent more.
So, why are so many companies overlooking such an important aspect of their business? Typically, it’s because they are so focused on new customers they forget to nurture the ones they already have. Here, we’ll cover 30 ways you can improve your customer retention rate, backed up by examples from companies who get it right. You can also skip ahead to our condensed visual below.
What is Customer Retention Rate?Customer retention rate measures the percentage of customers a company is able to keep over a given time period. Retention rate is often associated with churn rate, which is the percentage of customers a company has lost over a period of time.
Retention rate is a key metric companies look at to determine customer satisfaction. It’s calculated by measuring the total number of customers a company has and comparing that to how many are lost and acquired during a certain time period. You’ll need to look at three metrics:
- Number of customers at the end of a period
- Number of new customers acquired during that period
- Number of customers at the start of that period
Retention Rate = [(End Customers – New Customers)/Start Customers]*100
