Customer retention works on the simple rule that retaining customers is cheaper than acquiring them.
An article in the Harvard Business Review claims that acquiring a new customer is anywhere from 5 to 25 times more expensive than retaining an existing one.
Repeat customers are also more profitable for your business. They tend to spend more and are less sensitive to pricing - because they already trust your brand.
This study shows that just increasing your customer retention rates by 5% can increase your profits by 25% to 95%.
To sustain your business and continue making profits, you need to keep customers coming back again and again.
You need to give customers the best experience possible so that they fall in love with your brand. Once they fall in love with you, they will tell all their friends and family members about you. They become your loyal customers, your brand advocates.
This is precisely why more and more businesses are investing time, effort and money into customer retention plans and programs.
If you want to get onboard, you’ve come to the right place.
We’ve put this guide together to help everyone and anyone understand customer retention and apply it to their business.
Whether you're a marketer or business owner, whether you own a retail store, a cafe, restaurant, gym, or hair salon, you will find these customer retention tips easy, practical, and useful.