7 Best Ways To Increase Customer Retention For Lifetime Value

Learn the best customer retention strategies as you spend so much time getting new customers to purchase your products or services. Why not try to keep the ones you have? Customer Retention strategies are the key to growing your business. 

Retaining customers will save you a lot of time and money over time by keeping your current customers now.

It’s much less money to keep current clients than to get new ones. According to Forbes Magazine, it will cost you 5X more money to get a new client than keep an old one.

Here are the 7 ways for your customer retention strategies to grow your small business:

1. Interact With Customers Often

You may not have to meet with your customer weekly but interact either by phone, text, email, or social media. Get to know your customers preferred method of contact.

Reach out to offer advice, go over details, or at the very least check in.

Next, learn how often they liked to be reached. Some people love weekly chats, others prefer monthly as they are very busy running their own businesses as well. However, some may like a daily call as well.  

Following up with your customers is crucial to keeping them loyal to you over the years. Don’t let more than 30 days go by without any communication.

2. Help Your Customers Solve Their Problems

The best way to retain your amazing customers today is to help them solve their problems. It’s not about you or your problems! It is all about them and their problems. What can you do for them?

Therefore, learn what keeps them up at night. What is it that they cannot do alone or without you? Then go ahead and help them. Show them what you can do for them.

Always remember, that actions speak louder than words.

3. Respect Customer’s Time for Customer Retention

Most business owners today and regular people are really short on time. People seem to be so busy today than ever before, that they don’t have time to chit-chat for hours.

Take cues from their body language. Know when to leave! Or, know when to stay and chat.

If you promise a product or service by a certain time, be sure to deliver that promise or overdeliver to them if you can.

4. Do What You Say – Not Say What You Do

Most people are leery of salespeople. But if you do what you say you will do, prospects will come to like and respect you.

Never give an expectation that you cannot fulfill. That is the quickest way to lose an amazing customer!

If I tell someone I will be there at 2 pm, I most certainly will show up by 2 pm or call them if I’m stuck in traffic. Therefore, it’s about being respectful of others’ time and space.

That is one of the top ways for you to gain retention of customers to last a lifetime. 

5. Getting Personal for Retaining Customers

Most people like to do business with other people. People that they get to know and feel comfortable with.

Get to know a little about your clients. Do they have children? What are their favorite leisure activities? Maybe you can offer them special tickets, etc in time.

Don’t try to overcompensate in the beginning. They will feel like you are selling to them and no one likes being sold to. 

6. Apologize If Necessary For Customer Retention

There is nothing wrong with saying you are sorry if you make a mistake. Many people will appreciate your honesty alone over an apology.

If you can make it up to them with something better, by all means, do it! Learn to let go of your ego for the retention of customers in your small business. 

Customers love when they get more in return for an error. Think about it from their standpoint and view. Put yourself in their shoes.

When apologizing to customers, it’s crucial to acknowledge the specific issue and express genuine remorse. Clearly explain what went wrong and how you plan to address it.

Offer a sincere apology without making excuses. Provide a solution or compensation to rectify the situation.

Ensure that the customer feels heard and valued throughout the interaction. Then, follow up to confirm that the issue has been resolved to their satisfaction to assure customer retention.

7. Don’t Burn Your Bridges When Down

If the relationship must end do not burn your bridges over a disagreement. You never know who they know or who may take over their business one day. End the customer relationship on a positive note. 

When ending a business relationship, it’s important to maintain professionalism and avoid burning bridges. This means refraining from negative or hostile communication, even if the partnership did not end on good terms.

By keeping interactions respectful and civil, you leave the door open for potential future collaborations or referrals.

Additionally, maintaining a positive reputation in the industry can lead to new opportunities and prevent any damaging consequences from severed ties.

Finally, never say never.

What Are The Best Customer Retention Rates?  

High customer retention rates are crucial for sustained business success. The best customer retention rates vary by industry, but generally, a rate above 80% is considered strong.

A high retention rate indicates that a significant portion of customers continue to purchase from a company over time. It signifies customer satisfaction and loyalty, reducing the need for expensive customer acquisition efforts.

Moreover, it can lead to increased customer lifetime value and positive word-of-mouth referrals.

Therefore, businesses should focus on strategies that enhance customer satisfaction and loyalty to achieve and maintain high customer retention rates.

Your Turn on Retention of Customers

Now, what are you doing for for customer retention in your small business? I’d love to hear your tips on this one. Let’s discuss this in the comments below.