9 Effective Tips for Building Customer Retention

Whether it s convertingleads into prospects or prospects into customers, knowing customer retentionΒ should make acquisition and conversion costs worthwhile.

If your strategies are effective, retaining them can be profitable for you. πŸ€‘ Your loyal customers can become ambassadors for your brand and evolve as promoters on social media

How do you build customer retention? Definition

Customerloyalty is used in inbound marketing to define an approach aimed at building lasting , trusting relationships between a business and the consumer. πŸ’ͺ F or companies, this translates into brand communication and loyalty building that is attentive to the innovation of the company’s products/services

Loyalty enables companies to maintain constant sales without having to attract new customers all the time. 🀯 Loyal customers will naturally return to your brand. These same customers tend to rave about your brand , making it a word-of-mouth advertising vehicle that builds throughout the customerrelationship

Therefore, valuing the customer relationship is essential, as a general rule consumers are willing to pay more for a better customer experience. πŸ€” It is therefore an important criterion that influences the price of the product

What are the different types of customer retention?

  • Loyalty sought:

Sought loyalty is loyalty behaviour that customers reflect through the implementation of specific strategies and actions 🎯 (such as loyalty programmes, the implementation of solutions to manage customer personalisation, customer-centric approaches, etc.)

  • Induced loyalty:

Induced loyalty is a state of brand loyalty where consumers suffer from market conditions (monopoly, barriers to exit, exclusivity of offer, etc.) rather than true brand appeal. πŸ˜‘

  • Behavioural loyalty:

This is due to the inertia of behaviour and habits, rather than the result of genuine brand preference. 😦 This is often due to practicality

πŸ’‘ Customers can remain loyal to the point of sale because it is part of their daily routine, for example

  • Attitudinal loyalty:

Describes loyalty behaviours, or repurchases, which correspond to preferences developed in the real world for brands. The various factors that can drive attitudinal loyalty are generally: ⏬

  • product quality
  • price
  • the quality of the customer or purchasing experience,
  • the quality of the customer relationship.

Consequently, loyalty has its own attitude and is very often the result of loyalty demanded

πŸ‘‰ The existence of these different forms of customer loyalty shows that the relationship between customer satisfaction and loyalty is much more complex than we think. Satisfaction is certainly a lever for building loyalty, but there are also “dissatisfied loyal consumers”. What’s more, consumers are rarely totally satisfied and totally loyal to a brand. 🫢

customer retention

Customer retention example

For example, when you shop on Amazon, you’re always offered products bought by customers who look like you… πŸ” But how do they know that?

Let me explain πŸ˜‰

If having excellent customer service were an Olympic sport, Amazon would win the gold medal. πŸ₯‡ With its hyper-focus on customer satisfaction and a unique customer experience, Amazon’s level of customer service is practically a loyalty programme itself. Here are a few tactics Amazon uses to ensure superior customer service

  • Fast order fulfillment.
  • Free returns.
  • Ease of purchase and payment.
  • Personalised recommendations and offers (based on your search history).
  • Product diversity.
  • Amazon Prime” benefits for subscribers.

πŸ‘‰ Broadly speaking, Amazon focuses on 4 principles that guide its marketing strategy: a customer obsession rather than a focus on the competition, a passion for invention, a commitment to operational excellence and long-term thinking. 🏹

Innovation and testing have long guided Amazon’s forward-thinking approach toe-commerce. Amazon harnesses its wealth of data to continuously improve the customer experience. πŸ’Ή In fact, Amazon will often test a new concept on employees first or choose a specific market to quietly launch a new service

🀫 This agile method allows Amazon to respond quickly to feedback, continuing to test and tweak until they find the right solution for its customers!

9 tips to improve customer retention

1. Guarantee the quality of your products and services

Customer retention is based first and foremost on the quality of your product or service. πŸ’Ž Your customers must receive what you promised them. So take good care of your customers with quality after-sales service

What’s more, the quality of your offering should be measured periodically , not just when the service is provided. Quality customer support means : πŸ‘‡

  • Building a community of customers ready to help others to lighten the workload of the “community manager“,
  • Indicating the availability of customer support, by direct contact or through intermediaries,
  • Establish clear rules with your customers on sales conditions and processing times.

2. Continuously improve the customer experience

Customer experience brings together all the interactions between a customer and a brand. The aim is to create a unique, unforgettable experience that is difficult to recreate with the competition. πŸ₯°

This requires a highly personalised customer relationship , so you need to be present throughout thebuying process : πŸ‘‡

  • Upstream (visit to yourwebsite, presence on social networks , etc.),
  • During (delivery, set-up , use of the product, etc.),
  • And downstream (billing, reviews, customer service , etc.).

Each purchase of a product or service creates a customer contact. 🧲 Take advantage of this opportunity to strengthen your relationships throughout the customer journey. For example, with

  • A welcome email to the community.
  • Above all,be present at the machine to see the final result . Your presence can reassure customers and ensure quality control.
  • After 2-3 months of providing the service, systematically remind customers to check that everything is going well.
  • Stay connected with your customers by sending them regular content (tutorials, results, tips, new product showcases, etc.)

3.Listen to the voice of the customer

Listening to your customers is the basis of any successful business ! πŸ‘‚ By knowing the needs, uses and expectations of your customers,you can develop offers tailored to the market (“Product-Market Fit”), anticipate changes in your industry and look afteryour customers over the long term

That’s why it’ s so important to listen to what your customers have to say , whatever channel they use

  • Requested” via questionnaires, interviews, surveys, etc.
  • Unsolicited” via comments on social networks , customer support, online reviews, etc.
  • Implicit throughobservation of market trends , etc.

πŸ’‘ The important thing is to gather your customers opinions , by all available means. At the same time, let your partners and brand ambassadors speak on your behalf. The voice of customers is the best “storytelling” a company can acquire

4. Turning complaints into opportunities

There will always be customer complaints . πŸ™ˆ React like a pro to restore trust and react very quickly to retain these customers!

In these cases, customer services must show empathy and find a solution as quickly as possible, which will make it possible to

  • Turn complaints into opportunities by improving your offer,
  • Build a relationship of trust withyour customers,
  • Build customerloyalty to your brand.

πŸ‘‰ It’s true that complaints and negative comments can damage a company s image . But consider it as “informationrather than a personal attack. Responding quickly and effectively is the best you can do

5. Continue to offer after-sales value

What else can you offer your customers after they’ve bought your product or service ? πŸ€” For a start,show them that you exist!Even if you re dealing withsatisfied customers , you need to show them that they’ re important to your business. πŸ’– To do this, you can share free content with them , such as blog posts, tutorial videos, etc

Also, you can contact them directly, to dispelany doubts after the purchase

  • Immediately after the purchase, send customers a message to thank them for their trust (thank you email, personalised SMS),
  • Make sure you have stock, and remind them ofyour promises to them.

6. Decide which customers to retain

As you know, it’s very difficult to please everyone, so it will be difficult to retain all your customers. πŸ˜… You need to identify the 20% of your customers who generate 80% of your sales – this is Pareto’s law

So you need to get to know them well by looking at the history of all exchanges and analysing their behaviour. Prioritise your loyalty strategy according to these criteria

  • Segment your key customers by salesvolume,
  • Identify those who bring you brand awareness by having them in your network,
  • Identify customers who have hidden potential for the development of your business.

πŸ’‘ This analysis will enable you to align your actions with the right message and the right marketing targeting!

7. Looking after your customer database

In addition, the prospect > customer file givesyou a better understanding of buying habits , consumption patterns and buyer typology , etc. πŸ’―

You can also collect strategic information that enables optimal customerrelationship management by personalising the buying experience. 🀲 This makes it possible, for example

  • Develop products and services that improve the customer experience .
  • Study purchasing behaviour to generate additional and complementary sales.
  • Analyse changing needs, motivations and behaviour to innovate and develop new products and services.

πŸ‘‰ However, this customer file must be constantly updated so that coherent and effective commercial actions can be put in place to build customer retention !

8. Setting up a loyalty programme

If you want to offer a loyalty programme, you need to measure the satisfaction of your existing customers through questionnaires, surveys, telephone calls, etc. πŸ“ž

Next, identify customers who make regular purchases. πŸ’° There are several loyalty programmes, depending on the type of business

  • Referral by offering some sort of reward (discounts, gift vouchers, rewards, etc.) every time a customer brings in a new customer.
  • Pointssystem that accumulates based on order value and purchase history.
  • Invitations to private events (parties, product launches , private sales , etc.).
  • Competitions for customers who are part of the loyalty programme.
  • Send reminders by SMS or email to renew regular purchases.

9. Measure the effectiveness of loyalty efforts

Finally, anything that can be measured, can be improved : πŸ‘Œ see if your loyalty strategy isreally working

The analysis will vary depending on the loyalty programme you choose. Here are a few indicators that can help you : ⏬

  • Net Promoter Score measures the likelihood of customers recommending your community.
  • The repurchase rate is the percentage of customers who buy again after the first purchase.
  • The Upsell Rate is used to determine the percentage of customers who make a new purchase different from the first.
  • The customer retention rate (or retention rate) is the length of time a customer is active.
  • The customer acquisition rate can be used to check the effectiveness of your marketingefforts ( for example, based on the number of leads generated).

customer retention

How do you satisfy a customer?

Here are 3 simple tips to improve customer satisfaction: 🌟

1. Find out more about your customers:

To satisfy a customer, you must first take care of them. πŸ’ This is also why customer satisfaction relies on customer knowledge. My first piece of advice is simple: get to know your customers better

Who are they? 🧐What do they think of your product, your service and your company?

There are various ways of getting to know your customers better , such assatisfaction surveys . πŸ‘οΈβ€πŸ—¨οΈ In fact , asking your customers directly is the most direct and effective way of obtaining this information. ✍️

Feedback from customer support and online reviews can also help you to better understand your customers‘ expectations !

2.Improve customer relations :

Furthermore, it s not just the product that creates satisfaction, πŸ™Š but also the quality of the customer relationship. If you want your customers to be satisfied, you need to value who they are, not just the products and services they buy

You need to personalise your relationship with your customers, andthat includes improving your empathetic listening to your customersneeds. πŸ‘‚ Of course, the better you know your customers, the easier it will be to personalise your messages with them. 🀝 Creating satisfied customers also means meeting and surprising unexpressed expectations. To understand this better, learn to anticipate customer needs

3. Set specific objectives:

Customer satisfaction is a metric that needs to be measurable. πŸ“ To do this, you need to put in place satisfaction measures such as NPS (Net Promoter Score), CSAT (Customer Satisfaction Score) and CES (Customer Effort Score)

These actions should be carried out through satisfaction surveys sent out periodically and automatically. To satisfy your customers, you need to know them better . To get to know them better , you need to use a feedback management platform. This is a way of continuously feeding your CRM with customer knowledge and satisfaction data. 🧠

customer retention

How do you thank a customer?

Finally, we must remind you not to make the mistake of not taking the time to thankyour customers for their purchases and support! 🫣

However, this attention is a show of appreciation for potentialcustomers and it’s also the best way to build strong , lasting relationships. 🧱 Thanking a customeris more than just a polite message . It shows that you genuinely care about your customers, no matter how well they’ ve been involved in your portfolio, purchased from you, remained loyal to you , or had conversations with you

In this way, this approach affirms a certain appreciation for finding a trusted partner and forging a more personal relationship between customer and company. 😍 Thank-youemails are also used to reiterate the points discussed, reiterate certain elements and underline the motivations of the contact

These exchanges can also be used to provide new information, offer additional suggestions or call prospects to action. This is a highly strategic way of targeting, attracting and retaining new prospects, but it can also retain old customers through up-selling or cross-selling. πŸ”— Post-purchase email is also a great way to enhance brandimage, and it’s the surest way to build customer retention to your business over the long term

Example of a professional thank you email for a customer

πŸ‘‰ Here’s a sample professional thank you email for a customer

Conclusion: Customer retention

To conclude this article on how to build customer loyalty, we have seen the definition of customer retention and the concrete example of Amazon. πŸ€–

In addition, we’ve seen 9 tips for better customer loyalty: πŸ‘‡

  1. Guarantee the quality of your products and services.
  2. Continuously improve the customer experience.
  3. Listen to the voice of the customer.
  4. Turn complaints into opportunities.
  5. Continue to deliver value after the sale.
  6. Decide which customers to retain.
  7. Look after the customer file.
  8. Set up a loyalty programme.
  9. Measure the effectiveness of loyalty measures.

πŸ’‘ Now you know why it’ s important to build customer loyalty, especially if you want to grow in a highly competitive market… 😩 Companies that value their existing customers and want to reduce the search for new ones think that customer retention is the best business strategy ! πŸ’«

If you want to know more about customer loyalty strategies, like affiliate marketing, then read this content

And don’t hesitate to get in touch if you have any other ideas for improving this article πŸ˜‰ (See what I just did there?)

FAQ : How do you build customer retention?

How do you attract customers?

Here are the 4 steps to attracting customers online: ⏬

Step 1: Attract qualified visitors to your website

If you want to attract customers, you must first persuade them to visit your website. Define the keywords that potential customers search for before considering a purchase. Create optimisedweb content , with a good SEO strategy. Promote your content via social networks and email marketing. πŸ“©

Step 2: Convert visitors into leads

Once you ve attracted qualified visitors to your website , you need to do everything you can to retain them. Collect their contact details before they leave you. When they submit a contact form or subscribe to a newsletter, youcan provide them with premium content to download. To maximise your conversion potential, its also important to have call-to-action buttons on yourwebsite. πŸ””

Step 3: Convert prospects into customers

Once you’ ve collected your visitors details and converted them into leads, they need to trust you . 😌 To achieve this, its important to regularly send high-value content to motivate potential customers to buy. This is known as “lead nurturing”. What’s more, havinga combination of lead nurturing and lead scoring” can turn prospects into customers. πŸ”₯

Step 4: Retaining new customers

As you know, acquiring new customers costs a lot more than retaining them. However, sometimes it’s difficult to implement an effective loyalty strategy. 😬 But that wasbefore inbound marketing ! You can measure customer satisfaction using the same mechanism as lead nurturing and lead scoring. And then regularly send out quality content to improve the customer experience .πŸ‘Œ

What are the 3 types of customer retention?

The 3 main types of customer retention are: ⏬

  • Sought loyalty: This is loyalty behaviour that customers reflect through the implementation of specific customer strategies and actions 🎯 ( e.g. loyalty programmes , the implementation of personalised management solutions , customer-centric approaches , etc.).
  • Induced loyalty: This is brand loyalty behaviour in which the consumer suffers from market conditions (exclusivity, exit barriers , exclusivity of offer, etc.) rather than a genuine attraction to the brand. πŸ˜‘
  • Behavioural loyalty: This is due to the inertia of behaviour and habits rather than a genuine preference for the brand. 😦 This is often due to practicality. For example, customers may remain loyal to their point of sale because they are part of their daily journey.

What are the loyalty-building techniques?

There are many loyalty techniques that businesses use to keep their customers loyal and encourage them to return. πŸ˜‡

Here are some of the most common techniques: ⬇️

  • πŸ”΅ Loyalty programme.
  • 🟣 Exclusive offers and promotions.
  • πŸ”΅ Personalised communication.
  • 🟣 S ponsorship programme.
  • πŸ”΅ Exceptional customer service.
  • 🟣 Exclusivity.
  • πŸ”΅ Personalisation.
  • 🟣 Thanks and recognition.
  • πŸ”΅ After-sales follow-up.
  • 🟣 Special events.
  • πŸ”΅ Membership cards.
  • gamification.
  • πŸ”΅ Easy return and exchange programme.
  • 🟣 Collecting feedback.

We recommend combining several of these approaches to create a comprehensive and engaging loyalty experience for customers. 🧲

Now you know all about customer retention! πŸ‘

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