What’s a good customer retention rate?
by Admin
Posted on 15-06-2023 10:33 AM
How do you test and validate your sales assumptions and hypotheses for different product types?
5 contributions
what are some of the best ways to learn from other sales strategists or experts in your field?
3 contributions
how do you leverage social media and content
marketing
to promote different product types?
3 contributions
what are the best practices for communicating with your loyal customers?
11 contributions
how do you design and implement a sales incentive and reward system that drives performance and retention?
how do you balance the pressure to meet sales quotas with the quality of your customer service?
how do you establish rapport and empathy with prospects during a sales conversation?.
Customer retention is typically measured in terms of retention rate and should be monitored continuously. The first step to determining this rate is to identify the period of time an organization wants to record. This can range from a month to a fiscal year or beyond. Other factors used to determine the retention rate include the following: the number of customers in the customer base at the start of the period (s); the number of customers at the end (e); and the number of new customers acquired over time (n). These metrics should be recorded. Once retrieved, the formula is applied as follows: e-n/s x 100 = retention rate.
Repeat customers are an excellent indicator of a thriving business. If customers are happy with the value they get from your product and the experience of buying from you, you have an opportunity to earn their long-term loyalty. Customer retention is a measure of your company’s ability to do just that: convince customers that remaining loyal to your brand is a better option than going elsewhere. By focusing on customer retention, you can maximize the revenue you generate from each customer over time.
Retention marketing is the key to keeping your current customers engaged, winning back previous customers, and driving increased purchases from your existing customer base. Simply reintroducing them to your marketing funnel isn't enough. To prevent boredom and frustration, and to make them feel valued, a tailored approach is essential. In fact, research shows that 68% of customers would switch to a competitor if they perceive a lack of care from a company. To implement effective b2b retention marketing, you must incorporate specialized segmentation within your marketing funnel, ensuring that existing customers receive targeted content that is relevant to their needs.
Useful social media feature for customer retention
Here are a few top tips and strategies to follow when thinking of ways to increase customer retention:
use customer accounts. Accounts can make repurchasing easier by giving customers instant access to previous orders and pre-filled shipping information. The trick is to provide the option to create an account after the first order has been placed. Improve your customer support.
Support systems help you effectively communicate with your customers and provide them with the right level of support. Having a live chat or help desk tool available can turn a customer question into a sale or a customer complaint into a resolution, whether they come in on site, through email, or via social media.
Social media engagement and community building are essential components of a successful customer retention strategy. With the prevalence of social media in our daily lives, businesses have the opportunity to connect with their customers on a more personal level and foster a sense of community around their brand. To improve social media engagement, businesses need to first understand their target audience and create content that resonates with them. Consistency is key, so it's important to regularly post high-quality content that is relevant to your audience. Using hashtags can also help increase reach and engagement by making your content more discoverable.