Customer Retention Strategies: 8 Ways To Improve Customer Retention Rate In 2020

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Customer Retention Strategies 8 Ways To Improve
Customer Retention Rate In 2020
Are you looking for effective and impactful
customer retention strategies to retain your
existing customers?
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Customer retention is one of the biggest assets
ignored by most of the brands and businesses as
they are obsessed with lead generation and
acquiring new customers. To boost your
brand/business value, revenue and sales your
marketing techniques should always include
effective and impactful customer retention
strategies. By focusing on customer retention we
are not implying that acquiring new customers
and leads is not good for your business. But
retaining your existing customer should be your
primary choice as it can benefit your business
in many ways. According to the recent survey by
SAS and Loyalty 360, compared to the new
customer 68 of the business/sales come from
existing customers. Convincing your existing
customers can take less effort and cost compared
to your new customer because they already know
about your brand and service. Look at the below
ecommerce start to know why customer retention
is important for your business. In the article,
we will help you to differentiate between
customer acquisition and customer retention. Not
online thet but this article will also offer you
effective and impactful customer retention
strategies that you can use and implement to
retain your existing customer. If your business
is getting lots of cart abandonment rate then
checkout article on Reduce Shopping Cart
Abandonment Using Different T echniques In
2020 Customer Acquisition Vs Customer
Retention Many brands and businesses get
confused in identifying the difference between
customer acquisition and retention. Both are two
different things.
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Customer Aquisition The main goal behind
customer acquisition is to gain new customers to
grow sales and revenue. Customer aquisition is
more focused on marketing that means identifying
the potential customers and offering different
lead magnets to attract new lead. It is
dependent on various channels like paid ads,
commercials, or direct marketing (speaking
directly to the client to get business). Customer
aquisition strategy generally includes
identifying potential customers, creating and
implementing different marketing strategies,
communicating with potential leads, and
measuring the success of the marketing
strategy. Customer Retention Compared to
customer acquisition, customer retention is all
about focusing on and nurturing existing
customers to build a strong relationship with
them. Once your existing customer starts trusting
you then they will never hesitate to purchase
and use your product and services. Customer
retention strategies include optimizing your
customer service, product quality, seamless
communication, offering loyalty programs, and
more. Remember your existing customers are the
ones that will give you more profit than new
customers. Most of the brands and businesses
commit a mistake by ignoring their existing
customers are focusing on new customers below we
have discussed why you need to care about your
easing customer. If you are confused whether you
should focus more on customer acquisition or
retention then looked at the below chart
(Remember both are important but your existing
customer can offer more profit then new customer)
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• How to Calculate customer retention rates?
• If you want to calculate the customer retention
  rate for your business then you can follow the
  below steps which will offer you a brief insight
  into how you can calculate customer retention
  rate.
• Firstly, it is recommended to decide the time
  period (month quarter, days, and more)
• Next, identify the total number of customer you
  had at the beginning (customer purchased form
  your online store)
• After identifying that next you need to divide
  the total number of customers you had at the
  beginning and end of the time period.
• At the end of the time period, you might have
  gained new customers so before dividing you can
  subtract new customers by the total number of
  customers at the end of the time period.
• After identifying that you can divide the number
  of customers at the end of the time Prayer by
  the total number of customers at the beginning.
• Multiply the obtained number with 100 to get the
  customer retention rate.
• Why should you always follow up with your
  existing customer?
• Before jumping into how to improve your customer
  retention lets look into why you should care
  about your existing customer.

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Most businesses and brands around the world think
that by providing great products and services
they can make their customer stay. But the harsh
truth is that if your marketing strategy does not
include converting your existing customer into a
loyal customer then sooner or later they may
leave. Look at the below image to differentiate
between new and existing customers. Read more
on h ttps//www.sfwpexperts.com/customer-retention
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