20 Strategies to Increase Customer Retention in 2025

But, I’m not just going to say that providing great results is the only thing that keeps your clients around. In fact, my first long-term client churned after a couple Bitcoin of months because they “ran out of money.” But, I knew there was something else going on. They talked about how tech companies grow and what separates businesses that succeed and prosper from the ones that die out. It’s not just about the initial purchase they make, but the potential for repeat business, upsells, and referrals over their lifetime as a customer.

Show Genuine Care for the Relationship

Customer lifetime value enables an organization to calculate the net present value of the profit an organization will realize on a customer over a given period of time. Retention Rate is the percentage of the total number of customers retained in context to best customer service brokerage firms the customers that approached for cancelation. Even if you’re not thinking about their contract recurring just yet, it’s critical to set the stage for a long-term relationship. With an end-to-end client work management platform like Accelo, you can easily provide phenomenal customer satisfaction. And we’re not talking about just a customer relationship management solution.

Collect feedback with customer surveys

The primary goal https://www.xcritical.com/ is to cultivate lasting customer loyalty and increase satisfaction through a series of initiatives. Leveraging existing customer relationships is paramount and minimising churn is essential. If you do not provide complete information about a product, it may seem like you are hiding something.

How to Use WhatsApp for Business CRM to Streamline Operations

• Perhaps the most obvious way to measure customer retention is with customer retention rate.
• Stores with high-value, frequently purchased items will benefit the most from a robust retention strategy, as their customers typically have the highest lifetime value.
• More than clarifying your customer retention strategy, this helps your product team solve challenges faced by businesses.
• Its AI capabilities ensure that customers can get immediate answers and communicate from their computer or phone.
• Custom Dashboards in ClickUp are an easy way to stay on top of client issues and the status of resolutions.
• Conversely, a low retention rate indicates you need to improve your customer relationships and loyalty programs to prevent churn.
• This isn’t surprising – customers will naturally be attracted to brands that mirror their beliefs while enhancing their lifestyles, especially when they’re younger.

I used to think that if I just put my head down and worked on the things I thought were important, that’s all that mattered. But, I came to realize that it’s actually not the best approach when it comes to client relationships. At the last company I worked at, I asked one of the co-founders what they look for when they’re hiring someone. He responded with, “I ask myself if I’d be down to grab a beer with them in my free time.” In other words, he hired people that he saw himself being friends with. While they were getting results, their CEO did not understand the value of content. We parted ways, and a few months later when the content I had produced started to rank well in Google and drive them more revenue, they reached back out to resume the relationship.

So, it’s extremely valuable to check in from time to time and ask your clients how they’re feeling and if there’s anything you can do to continue giving them a great client experience. It’s funny because you see this all the time with products, especially in SaaS. Companies will send out customer feedback surveys and use them to influence product roadmaps. Educating your clients, and having them understand where you’re coming from, is the first step to having clients trust you and see the value in your experience and intellect. I truly believe that the best business interactions are built on the foundations of friendship. But you also need the soft skills to come off as likable and trustworthy.

Having said that, enhancing customer retention can be challenging and generally requires an intentional strategy that many companies don’t choose to prioritize. The purpose of customer retention tactics and programs is to keep customers engaged with your company and encourage them to make more purchases. Customers expect brands to anticipate their needs and get in front of issues before they even happen. Dollar Shave Club welcomes website visitors with a chatbot to answer common questions before a customer reaches out to customer support or abandons their cart. Create an online community for loyal customers to interact with each other and share their experiences. This can serve as an educational forum for customers to learn more about your products and gives you a direct line to their thoughts and problems.

When you actively showcase how your agency works towards a client’s goals, you make them feel genuinely understood, giving them a compelling reason to stay with your agency. While well-known in the retail world (grocery stores, beauty retailers, and clothing stores all commonly offer these programs), SaaS companies are also hopping aboard the rewards train. Loyalty or rewards programs use incentives like discounts and prizes to encourage customers to continue shopping with you. If there’s an issue, customers want to contact you right away—in a way that’s convenient to them. If it’s easy for them to get their issue resolved, you’ll likely gain a customer for life.

I recommend avoiding providing templated solutions for customers needing products and services that cater to differing industries, scales, time limitations, or other preferences. In my experience, first impressions are everything — especially when it comes to your customer retention plan. Customer support is the cornerstone of achieving and sustaining customer satisfaction. Excellent customer support goes beyond merely solving customers’ problems; it involves anticipating customer needs and proactively offering assistance. Nobody wants to be taken for granted, so periodically expressing gratitude to your customers for their business is essential for retention.

Online grocery shopping and self-service scanners are convenient, but people still like dealing with other people. When it comes to personalization, targeting the right people is the priority. Customers not only want to be treated like people through the personalization of recommendations and service but also want to see the humanity behind your brand. For example, HubSpot had an experience with this during a recent INBOUND when an outage we suffered impacted numerous enterprise customers. This made it easier for the team to streamline urgent or sensitive issues, improving their likelihood of preventing churn. Santa Cruz Bicycles did exactly this when it realized its current approach to customer support wasn’t sustainable.

Use these eight techniques to improve customer retention rates and show customers you care. This guide walks you through eight customer retention strategies, with examples of companies that get it right, plus actionable tips to retain your loyal customers. Keep your existing customers informed with newsletters, blog posts, and social media content about new products, services, and promotions. Creating educational content—such as how-to guides, tutorials, and product usage tips—helps customers get the most out of their purchases and feel more connected to your brand.

So if you’re doing something that bothers them, they won’t bring it up. Then, when they’ve had enough, they’ll churn and you won’t see it coming. But, for some reason, it’s fairly underutilized when it comes to freelance and agency work. I think as service providers we can become tunnel-visioned into believing that we have all the answers to our client’s problems.

The traditional one-time sale model focuses on selling a product a single time. However, in the subscription model, customers buy the product every month. Hence, the focus shifts from determining product value to the customer lifetime value. For instance, if you are having technical issues in your delivery system, try communicating the same to your customers. Otherwise, your customers may get annoyed while waiting for their products to arrive and move to your competitors.

It’s crucial to keep an eye on competitors to identify gaps in your products/services and pricing strategies and find areas of improvement or differentiation. Customer feedback about your competitors on third-party sites and insights from your own sales team who interact with former customers of competitors are a treasure trove for you. This strategy not only helps you in retaining customers, but also in attracting new ones by ensuring your offerings meet or exceed market expectations.