Improving the retention rate of the customers has become the top concern for every business. Attracting new customers is five times as much as keeping an existing customer and it differs based on your business. Increasing customer rate by 10% increases your business profit by up to 25% to 90%.
Technology provides many opportunities for small businesses to increase customer retention rates. Also, customer retention helps in a number of ways in increasing the profitability of your business. So, let’s get started to know them in detail,
Explaining customer retention rate in simple terms
The customer retention rate is totally different from the customer acquisition rate. It means that there are already converted customers.
It means the process of engaging customers and the percentage of customers that the company has gained over a certain period of time. It plays a major role in every business because every business’s profitability and success depend only based on the customers.
Calculating customer retention rate
It is important to calculate the customer retention rate because it increases the lifetime value of the customers and boosts revenue. It might be helpful for the company to compare the percentage of customers from the beginning and present.
Here comes the formula for calculating customer retention rate,
Retention Rate = ((CE-CN)/CS)) X 100
CE = Number of customers at the end of the period
CN = Number of new customers acquired
CS = Number of customers at the start of the period
Importance of customer retention in the business
For every business, customers are the greatest assets in increasing their profits as well as helps in reaching greater heights and reduces the customer churn rate.
- Increase brand reputation
- Build a long-lasting relationship with customers
- Identify and rectify flaws in the company
- Helps in understanding the future needs of the customers
- Get honest feedback from the existing customer
- Reduces the churn rate
Ways to increase customer retention rate with the technology
Customer satisfaction depends only on getting everything immediately. Connecting customers with your business are easier than you think.
Providing easy access through mobile is the most important thing to increase the customer retention rate. It provides many advantages.
It also increases customer engagement and allows them to interact with your brand based on their needs. Easy accessible and reliable options in your business help customers to get everything as per their needs and requirements.
Seamless payment options
Increase your customer satisfaction rates by making their experience totally seamless by providing multiple payment options like cash, card, or wallet. Making as many payment forms makes your business more feasible.
It also offers the ability to secure all the information provided by the customer and also allows them to stay longer on your site.
Multiple payment options make the process of payment faster and easier as well as increase profits as well as retention rates by making these kinds of simple things.
Giving customers a variety of choices to reach you at the right time based upon their needs at any time.
Allow customers to reach you through all forms of communication including Emails, various social networks like Facebook, Instagram, Twitter, live chats, SMS messaging, and also live chat options like a chatbot that automatically allows you to unriddle all your customer’s doubts.
This will automatically increase your customer base within a short period of time.
It is more crucial to acquire new customers but it is more profitable and powerful ways to grow your business is by retaining existing customers.
If you decided to attract and retain your customer, then it’s time for it to go for marketing automation.
Marketing automation is very useful in maintaining customer relationships that allow you to grow your company faster than ever.
How marketing automation is beneficial for the growth of the business?
- The conversion rate will be increased
- Increase productivity
- Automates the workflow
- Increase in sales and profits
- Create a better customer experience
- Convert more leads into customers
Instead of acquiring new customers, let’s keep the existing customers.
It is time for you to increase the customer retention rate for your business. Nowadays, increasing customer retention has become the most crucial part of every business.
Technology has changed and it has brought many new techniques as it becomes an essential tool for business growth. It not only provides benefits to the business but also increases the long term relationship with the customers.
So, make the smarter choice in increasing your customer retention rate for your business to thrive.
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