How to Increase Customer Retention in 2024?

Keeping your customers happy is a pretty easy task; however, it can be quite tricky at the same time. You have to maintain a satisfying relationship with them. You should not get too carried away with the satisfaction that you forget to focus on your end goal which is growth and selling products or services.

This is where customer retention comes in to save the day!

Customer Retention is still one of the most neglected aspects of business. This is not surprising though, since most businesses tend to focus on acquisition. Nonetheless, it’s essential to notice that a business is only as good as its customers. This is why companies tend to put a lot of effort in acquiring new customers and forget about the customers they already have.

But in 2024, businesses will finally realize how important it is to keep their current customers happy. In order to do that, companies will use automation to track and analyze every single touchpoint with their customers. This way they will better understand what exactly their customers want and how they want it.

A recent report by the Havas Group found that 77% of brands could disappear, and customers wouldn’t even be bothered.

Developing and maintaining customer retention is a difficult task, especially for new businesses.

If you want to learn how to retain customers for your brand, you’re in luck because that’s exactly what this article is about!

What is Customer Retention?

Every business considers customer retention a critical metric. The number of customers who return to your business time and time again is a sign of a healthy business. They are not only returning, but they are bringing new customers with them as well. Having loyal customers will not only make your life easier, but also your business. The best way to make customers feel appreciated is to listen to them. Customers want to be listened to, to have their concerns addressed, and to be treated with respect. If a company is not listening to its customers, it is doomed to fail. Many companies do not listen to the public because they think they know better.

For example, a few years ago, BlackBerry was a very popular cell phone before the iPhone came along. BlackBerry did not know that its customers wanted touch screens and apps. As a result, many customers left BlackBerry for the iPhone.

What are the strategies for Customer Retention in 2024?

It’s quite obvious that customer retention plays a vital role in any business. A lot of companies have already understood how important it is to maintain the loyalty of their current customers. However, the challenge is that it’s difficult to retain customers. Especially in a competitive market, you have to do something to keep your customers. Companies are now working on the strategies to keep their customers and the biggest challenge is how to impress your customers with the next purchase. It’s said that there are five stages of customer retention within the customer life cycle.

According to the experts, the stages are: Recognition, preference, purchase, loyalty, and advocacy.

The stages may vary depending on your industry. For example, the recognition stage may be the first interaction of a customer with your business. The recognition stage is when the customer becomes aware of your business and she starts to form a relationship with your business. So, the next essential steps for the business owner is to make her customers recognize your business, prefer your business, purchase from you, go loyal, and then advocate for you.

Like to survive in the increasingly competitive e-commerce market, firms will have to find new ways to attract and retain customers. Customers are demanding a more personalized, convenient, and tailored experience, which is driving a shift in the way companies are managing their relationships with their customers. With the rise of new technology and shifting consumer expectations, companies will have to move beyond traditional customer retention strategies.

What are the anticipated problems that can affect the customer retention in 2024?

A customer who remains loyal to a brand and continues to purchase products is referred to as a ” retained ” customer. When a customer takes no action (e.g. fails to repurchase, switches to a competing brand, etc.), they are said to have been “lost” for that brand.

It has been estimated that the cost of retaining a customer is anywhere from 15 to 25 times cheaper than acquiring a new one.

In the past, customer retention was based on simple things, such as repeat orders and loyalty programs. But consumers are changing, and customer retention strategies need to change, too. There are lots of things that affect the customer retention, such as the good customer services, the higher product quality, the wider product range, the fast delivery, the loyal discounts, the good after-sale service, the personalized customer services, the customer satisfaction survey and so on.

How to use customer retention and data analytics in increasing customer loyalty?

As per stats, the amount of money spent on customer retention will grow by more than 10x in the coming years.

The growth of this industry will be driven by rising customer expectations, a lack of customer loyalty, and increased awareness of how the customer experience impacts business operations.

• An easy way to calculate average annual costs for retaining a customer by dividing annualized customer retention cost (e.g. customer retention cost for the last quarter x 4) by the total number of active customers.
• To calculate the total CRC, multiply the lifetime average of a customer by the CRC per customer.

Orchestrating all customer touchpoints:

In any business, the cost of getting a new customer is much higher than the cost of keeping an existing customer. The cost of acquisition is anywhere from 5 to 25 times that of customer retention.

The problem with customer retention is that, in many cases, the customer is not aware of how much you are willing to go to keep them. They might not know that you are willing to give them a free upgrade if they refer another customer or that you are willing to reduce the price of your product if they opt-in to a service upgrade.

The trick is to find out what your customers want and then do everything in your power to give it to them.

How can you take the bull by the horn and be different in the customer retention industry?

• Determine Your END user Segment:  Targeting the wrong user segment will only lead to churn, so make sure that you have a well-defined insight into your users and they’re their unique pain points before you begin targeting them. It can be difficult sometimes, but as your target market grows so too will your product!
• Establish Customer Onboarding Strategy: Customer retention is a subject that has been talked about for a long time, but it still remains a big area of opportunity. When it comes to customer retention, the main focus is on retaining current customers, rather than attracting new ones.

The idea is that if you can retain your current customers, you are making money by not having to go out and find new customers. The problem with that is that it is very difficult to get noticed in the current market and you will still be competing with other companies.

Communication is key: Make it a point to interact with your customers regularly. Create an effective platform together with your target customers by communicating to them via email, social media, newsletters and automated calls. Utilize a cloud-based telephony platform to personalize customer experiences and build employee communicational bridges.

Trust DialDesk Effective Cloud Telephony solutions to reduce churn and boost the revenue of your business.

Build Engagement Avenues:  When we think about the world of customer retention, only one word can come to mind: engagement.

There’s no way that a business will be able to retain its customers if it doesn’t engage with them first. A lot of businesses are already doing this, and that’s why they’re doing so well and gaining more success than others.

Acting on feedback: Companies should focus on running effective campaigns to get feedback from their customers without being intrusive.

Automated Calls give you a 3X advantage to other channels, because they can be scheduled using a telephony platform that is cloud-based like DialDesk, and are conducted with the help of an IVR system which allows you to easily handle customer feedback programs.

Our team of experts can provide you with the comprehensive solutions you need to retain customers. Please contact us for any queries you may have.

Author Profile

Varuna Raghav

As a CX and marketing specialist, Varuna Raghav has more than 15+ years of experience to her name. Her enriching input has been valuable to the brands and organizations she's worked with.

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🔗 Tags: How to Increase Customer Retention in 2022?, What are the strategies for Customer Retention?

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