{"id":153462,"date":"2023-04-29T07:00:30","date_gmt":"2023-04-29T06:00:30","guid":{"rendered":"https:\/\/startups.co.uk\/?p=153462"},"modified":"2023-04-29T15:17:14","modified_gmt":"2023-04-29T15:17:14","slug":"customer-retention-strategies","status":"publish","type":"post","link":"https:\/\/startups.co.uk\/crm-software\/customer-retention-strategies\/","title":{"rendered":"Customer retention: a guide to finding and keeping customers"},"content":{"rendered":"<div class=\"wpb-content-wrapper\"><p>[vc_row][vc_column][vc_column_text]Are you leaving thousands of pounds on the table every day while chasing new customers? <span style=\"font-weight: 400\">You could be<\/span><span style=\"font-weight: 400\">, especially if you&rsquo;ve been neglecting your existing ones &ndash; a key mistake in any business&rsquo;s <strong><a href=\"https:\/\/startups.co.uk\/crm-software\/best-crm-for-small-business-uk\/\">customer relationship management<\/a><\/strong> strategy.<\/span><\/p>\n<p><span style=\"font-weight: 400\">In the marketing and business world, survival isn&rsquo;t just about attracting fresh faces&mdash;it&rsquo;s about holding onto the treasure trove of customers you already have.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400\">And so, welcome to our guide on customer retention, where we unveil the secrets to finding, keeping, and utterly delighting your customers&mdash;the key to unlocking your business&rsquo;s hidden goldmine. As we begin making moves for 2024, after a tumultuous year underscored by the dreadful <\/span><a href=\"https:\/\/startups.co.uk\/news\/cost-of-living-2023\/\"><b>cost of living crisis<\/b><\/a><span style=\"font-weight: 400\">, the importance of customer retention has never been more significant.<\/span><\/p>\n<p><span style=\"font-weight: 400\">In this comprehensive guide, we will journey into the realm of customer retention &ndash; exploring the strategies and tactics that can transform casual buyers into <\/span>loyal advocates<span style=\"font-weight: 400\">.&nbsp;<\/span>[\/vc_column_text]<\/p><div class=\"jumplinks-content\">\n <h3 class=\"jumplinks-content-title\">\n In this article, we will cover: <\/h3>\n <ul class=\"jumplinks-content-list\">\n <li class=\"jumplinks-content-item\">\n <a class=\"jumplinks-content-link jumplink-anchor\" href=\"#link-what-is-customer-retention-and-why-is-it-important\">What is customer retention and why is it important?<\/a>\n <\/li>\n <li class=\"jumplinks-content-item\">\n <a class=\"jumplinks-content-link jumplink-anchor\" href=\"#link-8-of-the-best-customer-retention-strategies\">8 of the best customer retention strategies<\/a>\n <\/li>\n <li class=\"jumplinks-content-item\">\n <a class=\"jumplinks-content-link jumplink-anchor\" href=\"#link-customer-retention-pitfalls-to-avoid\">Customer retention pitfalls to avoid<\/a>\n <\/li>\n <li class=\"jumplinks-content-item\">\n <a class=\"jumplinks-content-link jumplink-anchor\" href=\"#link-recovering-from-customer-retention-setbacks-a-case-study\">Recovering from customer retention setbacks: a case study<\/a>\n <\/li>\n <li class=\"jumplinks-content-item\">\n <a class=\"jumplinks-content-link jumplink-anchor\" href=\"#link-calculating-your-customer-retention-rate\">Calculating your customer retention rate<\/a>\n <\/li>\n <li class=\"jumplinks-content-item\">\n <a class=\"jumplinks-content-link jumplink-anchor\" href=\"#link-conclusion\">Conclusion<\/a>\n <\/li>\n <li class=\"jumplinks-content-item\">\n <a class=\"jumplinks-content-link jumplink-anchor\" href=\"#link-faqs\">FAQs<\/a>\n <\/li>\n <\/ul>\n<\/div>\n[\/vc_column][\/vc_row][vc_row][vc_column]<div class=\"jumplink-anchor-section\">\n <div class=\"jumplink-anchor-pointer\" id=\"link-what-is-customer-retention-and-why-is-it-important\"><\/div>\n<\/div>\n[vc_column_text]\n<h2>What is customer retention and why is it important?<\/h2>\n<p>[\/vc_column_text][vc_column_text]<span style=\"font-weight: 400\">Customer retention is the practice of maintaining an <\/span><a href=\"https:\/\/startups.co.uk\/crm-software\/customer-insights\/\" target=\"_blank\" rel=\"noopener\"><b>ongoing relationship with your existing customers<\/b><\/a><span style=\"font-weight: 400\">, ensuring they continue to choose your products or services over time. It involves consistently delivering value, meeting customer expectations, and encouraging repeat business &ndash; and encompasses a range of strategies that retain these customers rather than solely acquiring new ones.<\/span><\/p>\n<p><span style=\"font-weight: 400\">The benefits of customer retention can be a game-changer for your business. Here are just a few benefits along with their proven statistics regarding how retention can save you time, boost customer loyalty and make you more money.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">It costs <\/span><b>5 &ndash; 25x less to retain a returning customer<\/b><span style=\"font-weight: 400\"> than to find a new one. (<\/span><a href=\"https:\/\/www.outboundengine.com\/blog\/customer-retention-marketing-vs-customer-acquisition-marketing\/#:~:text=Acquiring%20a%20new%20customer%20can,customer%20is%205%2D20%25.\"><b>Source<\/b><\/a><span style=\"font-weight: 400\">)<\/span><\/li>\n<li style=\"font-weight: 400\"><b>Existing customers are 50% more likely to buy<\/b><span style=\"font-weight: 400\"> new products than new customers. (<\/span><a href=\"https:\/\/trust.bizjournals.com\/blog\/your-most-powerful-competitive-advantage-is-customer-retention#:~:text=Existing%20customers%20are%2050%25%20more,in%20their%20first%20six%20months\"><b>Source<\/b><\/a><span style=\"font-weight: 400\">)<\/span><\/li>\n<li style=\"font-weight: 400\"><b>92% of consumers<\/b><span style=\"font-weight: 400\"> believe suggestions from friends and family are better than advertising (<\/span><a href=\"https:\/\/www.lxahub.com\/stories\/word-of-mouth-marketing-stats-and-trends-for-2023\"><b>Source<\/b><\/a><span style=\"font-weight: 400\">)<\/span><\/li>\n<li style=\"font-weight: 400\"><b>Finding new customers costs 5 &ndash; 20x more time and money<\/b><span style=\"font-weight: 400\"> than reselling to an existing client (<\/span><a href=\"https:\/\/alafave.org\/it-is-more-expensive-to-gain-a-new-customer-than-to-retain-an-existing-customer\/#:~:text=It%20is%20much%20more%20expensive,profits%20by%2025%25%20or%20more.\"><b>Source<\/b><\/a><span style=\"font-weight: 400\">)<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400\">&hellip;and that&rsquo;s just to name a few.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Customer retention stands as an indispensable strategy in the modern business landscape. It&rsquo;s an approach that champions cost-efficiency, capitalises on customer loyalty, and harnesses the potential for organic growth.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400\">For businesses, grasping the significance of customer retention is akin to unlocking the secrets to enduring success and continuous prosperity. This has been proven time and time again as one of the most effective ways to <a href=\"https:\/\/startups.co.uk\/lean-business\/an-introduction-to-lean-business\/\"><strong>boost business profits<\/strong><\/a> with <\/span>much higher efficiency.[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column]<\/p><div class=\"jumplink-anchor-section\">\n <div class=\"jumplink-anchor-pointer\" id=\"link-8-of-the-best-customer-retention-strategies\"><\/div>\n<\/div>\n[vc_column_text]\n<h2>8 of the best customer retention strategies<\/h2>\n<p>[\/vc_column_text][vc_empty_space height=&rdquo;25px&rdquo;]\n <\/p><div class=\"highlight-box\">\n <div class=\"highlight-box-decor\">\n <svg class=\"brush-stroke-svg brush-stroke-big\" preserveaspectratio=\"none\" viewbox=\"0 0 116 6\" version=\"1.1\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" xmlns:xlink=\"http:\/\/www.w3.org\/1999\/xlink\">\n <g stroke=\"none\" stroke-width=\"1\" fill=\"#ea0037\">\n <path d=\"M94.0845406,5.55784045 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C90.1365986,4.01704002 90.0160791,4.03643854 90.1667284,4.05583706 C90.2269882,4.05583706 90.4077674,4.07523558 90.498157,4.05583706 C90.5885466,4.07523558 90.6186765,4.05583706 90.6789362,4.03643854 Z M86.2696559,4.0213508 C86.0888766,4.0213508 85.9080974,4.0213508 85.7273182,4.0213508 C85.546539,4.0213508 85.4260195,4.04074932 85.4862792,4.04074932 C85.6369286,4.04074932 85.8478377,4.06014784 86.0286169,4.06014784 C86.1792662,4.06014784 86.2696559,4.04074932 86.2696559,4.0213508 Z\"><\/path>\n <\/g>\n <\/svg>\n <\/div>\n \n <div class=\"highlight-box-content\">\n <p><b>The customer delight theory<\/b><\/p>\n<p><span style=\"font-weight: 400\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-155797 size-large\" src=\"https:\/\/images.startups.co.uk\/wp-content\/uploads\/2023\/04\/brandi-alexandra-Mvav3d0Ki2k-unsplash-1-1-640x480.jpg\" alt=\"An image of a Mickey Mouse ferriss wheel across a lake at Disneyland\" width=\"640\" height=\"480\" srcset=\"https:\/\/images.startups.co.uk\/wp-content\/uploads\/2023\/04\/brandi-alexandra-Mvav3d0Ki2k-unsplash-1-1-640x480.jpg 640w, https:\/\/images.startups.co.uk\/wp-content\/uploads\/2023\/04\/brandi-alexandra-Mvav3d0Ki2k-unsplash-1-1-480x360.jpg 480w, https:\/\/images.startups.co.uk\/wp-content\/uploads\/2023\/04\/brandi-alexandra-Mvav3d0Ki2k-unsplash-1-1-768x576.jpg 768w, https:\/\/images.startups.co.uk\/wp-content\/uploads\/2023\/04\/brandi-alexandra-Mvav3d0Ki2k-unsplash-1-1-1536x1152.jpg 1536w, https:\/\/images.startups.co.uk\/wp-content\/uploads\/2023\/04\/brandi-alexandra-Mvav3d0Ki2k-unsplash-1-1.jpg 2032w\" sizes=\"(max-width: 640px) 100vw, 640px\"><\/span><\/p>\n<p><span style=\"font-weight: 400\">Customer delight means surprising a customer by exceeding their expectations and thus creating a positive emotional reaction.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Oliver et al (1997) developed a customer delight model which found evidence that the experience of delight creates a desire for future recurrences of the sensation via the repetition of consumption, which <\/span><b>creates loyalty<\/b><span style=\"font-weight: 400\">.<\/span><\/p>\n<p><span style=\"font-weight: 400\">As the research shows, if executed correctly, surprise and delight can be extremely powerful tools used to generate an emotional connection with a company or brand, to drive purchase behaviour and to create genuine member loyalty.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Source: Oliver, R. L., Rust, R. & Varki, S., 1997, &lsquo;Customer Delight: Foundations, Findings, and Managerial Insight&rsquo;, Journal of Retailing, Vol 73, Iss 3, pp311-336.<\/span><\/p>\n<p><b>Source: <\/b><a href=\"https:\/\/loyaltyrewardco.com\/loyalty-psychology-series-customer-delight-and-decision-affect-theory\/#_ftn5\"><b>Loyalty Reward Co.<\/b><\/a><\/p>\n <\/div>\n <\/div>\n[vc_empty_space height=&rdquo;25px&rdquo;][vc_column_text]<span style=\"font-weight: 400\">Discovering the path to customer delight requires a multifaceted approach. Here are diverse strategies to not only meet but exceed your customers&rsquo; expectations:<\/span>\n<ol>\n<li style=\"font-weight: 400\"><a href=\"https:\/\/startups.co.uk\/news\/customer-loyalty-programmes-vital-businesses-retain-customers\/\"><b>Loyalty programs<\/b><\/a><b> and rewards:<\/b><span style=\"font-weight: 400\"> incentivise repeat business with loyalty programs that offer rewards, discounts, or exclusive perks.<\/span><\/li>\n<li style=\"font-weight: 400\"><b><a href=\"https:\/\/startups.co.uk\/marketing\/surprise-and-delight\/\">Surprising and delighting customers<\/a>:<\/b><span style=\"font-weight: 400\"> create memorable moments by occasionally surprising customers with unexpected gestures like handwritten thank-you notes or surprise gifts.<\/span><\/li>\n<li style=\"font-weight: 400\"><b>Soliciting and acting on feedback:<\/b><span style=\"font-weight: 400\"> encourage customer feedback and actively implement suggestions to show your commitment to improvement.<\/span><\/li>\n<li style=\"font-weight: 400\"><a href=\"https:\/\/startups.co.uk\/marketing\/the-ultimate-rebranding-guide\/\"><b>Consider rebranding for a stronger brand identity:<\/b><\/a> <span style=\"font-weight: 400\">a well-defined brand identity not only fosters recognition but also evokes emotions and trust among customers.<\/span><\/li>\n<li style=\"font-weight: 400\"><b>Providing exceptional customer service:<\/b><span style=\"font-weight: 400\"> exceptional customer service should be a non-negotiable aspect of your business, leaving customers with positive experiences they&rsquo;ll remember.<\/span><\/li>\n<li style=\"font-weight: 400\"><b>Offering personalised onboarding and experiences: <\/b><span style=\"font-weight: 400\">in the world of customer retention, personalisation reigns supreme. Data allows businesses to gain profound insights into each customer&rsquo;s preferences, behaviours, and purchase history. Leveraging this information, you can create tailored experiences and product recommendations that resonate with individuals on a personal level.<\/span><\/li>\n<li style=\"font-weight: 400\"><b>Seeking customer feedback and fostering inclusivity: <\/b><span style=\"font-weight: 400\">engage your customers in shaping your products or services and make them feel like valued participants in your business journey.<\/span><\/li>\n<li style=\"font-weight: 400\"><b>Subscriptions: <\/b><span style=\"font-weight: 400\">Consider <\/span><a href=\"https:\/\/startups.co.uk\/marketing\/tips\/subscription-business-model\/\"><b>subscription models<\/b><\/a><span style=\"font-weight: 400\"> that provide customers with convenience, predictability, and ongoing value.<\/span><\/li>\n<\/ol>\n<p>[\/vc_column_text][vc_empty_space height=&rdquo;25px&rdquo;]\n <\/p><div class=\"highlight-box\">\n <div class=\"highlight-box-decor\">\n <svg class=\"brush-stroke-svg brush-stroke-big\" 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loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-157386\" src=\"https:\/\/images.startups.co.uk\/wp-content\/uploads\/2023\/04\/wicked-monday-jxhM5Ni46zw-unsplash.jpg\" alt=\"\" width=\"1500\" height=\"1000\" srcset=\"https:\/\/images.startups.co.uk\/wp-content\/uploads\/2023\/04\/wicked-monday-jxhM5Ni46zw-unsplash.jpg 1500w, https:\/\/images.startups.co.uk\/wp-content\/uploads\/2023\/04\/wicked-monday-jxhM5Ni46zw-unsplash-480x320.jpg 480w, https:\/\/images.startups.co.uk\/wp-content\/uploads\/2023\/04\/wicked-monday-jxhM5Ni46zw-unsplash-640x427.jpg 640w, https:\/\/images.startups.co.uk\/wp-content\/uploads\/2023\/04\/wicked-monday-jxhM5Ni46zw-unsplash-768x512.jpg 768w\" sizes=\"(max-width: 1500px) 100vw, 1500px\"><\/strong><\/a><\/span><\/p>\n<p><span style=\"font-weight: 400\"><a href=\"https:\/\/startups.co.uk\/marketing\/best-affiliate-programs\/\"><strong>Amazon<\/strong><\/a>, the ecommerce giant, is a prime example of data-driven personalisation. Its recommendation engine analyses a customer&rsquo;s browsing and purchase history to suggest products they are likely to be interested in.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400\">This personalised approach enhances the customer&rsquo;s shopping experience and increases the likelihood of repeat purchases.<\/span><\/p>\n<p><strong>Source: <\/strong>Amazon<\/p>\n <\/div>\n <\/div>\n[vc_empty_space height=&rdquo;25px&rdquo;][\/vc_column][\/vc_row][vc_row][vc_column]<div class=\"jumplink-anchor-section\">\n <div class=\"jumplink-anchor-pointer\" id=\"link-customer-retention-pitfalls-to-avoid\"><\/div>\n<\/div>\n[vc_column_text]\n<h2>Customer retention pitfalls to avoid<\/h2>\n<p><span style=\"font-weight: 400\">In the quest to retain and delight customers, pitfalls abound that can jeopardise your efforts and drive customers away.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400\">In this section, we explore some of the most common customer retention pitfalls and, more importantly, how to steer clear of them.&nbsp;<\/span><\/p>\n<h3>1. Ignoring customer feedback<\/h3>\n<p><span style=\"font-weight: 400\">Customers who take the time to provide feedback often do so because they care about your business. Ignoring their input can make them feel undervalued and unheard. Unaddressed issues or suggestions can fester, leading to customer dissatisfaction.<\/span><\/p>\n<p><span style=\"font-weight: 400\">By dismissing feedback, you miss out on opportunities to identify and rectify problems, ultimately hindering your chances of enhancing customer satisfaction and retention.<\/span><\/p>\n<p><b>How to avoid:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Actively solicit and encourage customer feedback through surveys, reviews, and other direct communication channels.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Establish a system to collect, categorise, and prioritise customer feedback &ndash; like a good <\/span><a href=\"https:\/\/startups.co.uk\/project-management-software\/best-project-management-software\/\"><b>project management software<\/b><\/a><span style=\"font-weight: 400\">.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Regularly review and analyse feedback to identify recurring issues and improvement opportunities.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Take concrete actions based on feedback, <\/span><a href=\"https:\/\/startups.co.uk\/people\/management\/stakeholder-management-guide\/\"><b>communicate changes to customers<\/b><\/a><span style=\"font-weight: 400\">, and demonstrate that their input matters.<\/span><\/li>\n<\/ul>\n<h3>2. Inconsistent communication<\/h3>\n<p><span style=\"font-weight: 400\">Inconsistent communication can confuse customers and make it challenging for them to understand your brand and offerings. It can lead to missed opportunities to engage with customers and showcase your value.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400\">Customers may perceive inconsistency as a lack of professionalism or reliability, which can damage your reputation.<\/span><\/p>\n<p><b>How to avoid:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Develop a clear and consistent communication strategy that encompasses all customer touchpoints, including emails, social media, and customer support interactions.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Ensure that your messaging aligns with your <\/span><a href=\"https:\/\/startups.co.uk\/blog\/twitter-startups-brand-identity\/\"><b>brand identity<\/b><\/a><span style=\"font-weight: 400\"> and <\/span><a href=\"https:\/\/startups.co.uk\/strategy\/company-values\/\"><b>values<\/b><\/a><span style=\"font-weight: 400\">.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Use automation tools and<a href=\"https:\/\/startups.co.uk\/crm-software\/open-source-crm\/\" target=\"_blank\" rel=\"noopener\"><strong> customer relationship management (CRM) systems<\/strong><\/a> to maintain regular and personalised communication. (For help finding a CRM system, try our specialised <\/span><a href=\"https:\/\/webforms.startups.co.uk\/crm?nwid=sidebarCTA&_gl=1*ly34h4*_ga*MTI2MjAzNzE0OS4xNjY1MzkxODM4*_ga_TV8NP29ZR1*MTY5NDUyNTIxOS41OTkuMS4xNjk0NTI1NTk1LjU4LjAuMA..\"><b>free comparison tool<\/b><\/a><span style=\"font-weight: 400\"> for quotes.)<\/span><\/li>\n<\/ul>\n<h3>3. Poor customer service<\/h3>\n<p><span style=\"font-weight: 400\">Customer service is often the frontline of customer interaction, and poor service can be a significant detriment to your customer retention.&nbsp;<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\">Negative customer service<span style=\"font-weight: 400\"> experiences can leave a lasting impression and <\/span>drive customers away.<\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Poorly handled issues or inquiries can <\/span>escalate into larger problems<span style=\"font-weight: 400\">, leading to customer frustration and dissatisfaction.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">In today&rsquo;s interconnected world, customers can <\/span>quickly share their negative experiences online<span style=\"font-weight: 400\">, potentially damaging your brand&rsquo;s reputation.<\/span><\/li>\n<\/ul>\n<p><b>How to avoid:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Invest in comprehensive training for your customer service team to ensure they can handle a range of customer inquiries and problems effectively.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Establish clear customer service policies and guidelines for handling complaints and resolving issues promptly.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400\">Foster a customer-centric culture within your organisation, where every employee understands the importance of <\/span><a href=\"https:\/\/startups.co.uk\/guides\/how-to-start-a-customer-service-business\/\"><b>excellent customer service<\/b><\/a><span style=\"font-weight: 400\">.<\/span>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column]<\/p><div class=\"jumplink-anchor-section\">\n <div class=\"jumplink-anchor-pointer\" id=\"link-recovering-from-customer-retention-setbacks-a-case-study\"><\/div>\n<\/div>\n[vc_column_text]\n<h2>Recovering from customer retention setbacks: a case study<\/h2>\n<p>[\/vc_column_text][vc_empty_space height=&rdquo;25px&rdquo;]\n <\/p><div class=\"highlight-box\">\n <div class=\"highlight-box-decor\">\n <svg class=\"brush-stroke-svg brush-stroke-big\" preserveaspectratio=\"none\" viewbox=\"0 0 116 6\" version=\"1.1\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" xmlns:xlink=\"http:\/\/www.w3.org\/1999\/xlink\">\n <g stroke=\"none\" stroke-width=\"1\" fill=\"#ea0037\">\n <path d=\"M94.0845406,5.55784045 C93.4629887,5.58758734 92.7723755,5.58758734 92.2198849,5.64708111 C92.0127009,5.66195455 91.7824965,5.67682799 91.5062512,5.66195455 C89.5955547,5.58758734 87.6618377,5.5727139 85.7511411,5.67682799 C85.5669776,5.69170144 85.2446914,5.67682799 84.9914666,5.67682799 C82.8275451,5.66195455 80.6866442,5.63220767 78.4997023,5.67682799 C76.0825561,5.72144832 73.5963485,5.64708111 71.271284,5.73632176 C69.3605874,5.81068898 67.5649931,5.76606865 65.7003374,5.76606865 C62.4084144,5.76606865 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<\/g>\n <\/svg>\n <\/div>\n \n <div class=\"highlight-box-content\">\n <p><b>United Airlines<\/b><\/p>\n<p><span style=\"font-weight: 400\"><strong><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-157387\" src=\"https:\/\/images.startups.co.uk\/wp-content\/uploads\/2023\/04\/hanson-lu-FT2WwbS1LJQ-unsplash-1.jpg\" alt=\"\" width=\"1000\" height=\"680\" srcset=\"https:\/\/images.startups.co.uk\/wp-content\/uploads\/2023\/04\/hanson-lu-FT2WwbS1LJQ-unsplash-1.jpg 1000w, https:\/\/images.startups.co.uk\/wp-content\/uploads\/2023\/04\/hanson-lu-FT2WwbS1LJQ-unsplash-1-480x326.jpg 480w, https:\/\/images.startups.co.uk\/wp-content\/uploads\/2023\/04\/hanson-lu-FT2WwbS1LJQ-unsplash-1-640x435.jpg 640w, https:\/\/images.startups.co.uk\/wp-content\/uploads\/2023\/04\/hanson-lu-FT2WwbS1LJQ-unsplash-1-768x522.jpg 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\"><\/strong><\/span><\/p>\n<p><span style=\"font-weight: 400\"><strong>United Airlines<\/strong>, like many large carriers, faced a series of customer service incidents that drew widespread attention and criticism. These incidents ranged from overbooking flights to handling passengers&rsquo; luggage and involuntary denied boarding situations. These incidents created a storm of negative publicity, eroding customer trust and satisfaction.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Recognising the urgency of the situation, United Airlines decided to pivot towards a customer-centric approach. The company made several strategic moves to address the issues and regain customer loyalty:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Apologising and taking responsibility<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Implementing new policies and procedures<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Enhancing training and empathy<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Loyalty programs and compensation<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400\">United Airlines&rsquo; commitment to a customer-centric approach gradually began to yield positive results.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400\">Customer satisfaction scores showed improvement as passengers experienced more seamless travel experiences and felt heard and respected when issues arose. As customer satisfaction increased, so did customer loyalty.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400\">Passengers who might have considered switching to competitors began to give United Airlines another chance.<\/span><\/p>\n<p><span style=\"font-weight: 400\">And finally, the airline&rsquo;s efforts in improving customer service and experience started generating positive word of mouth. Satisfied passengers began to share their good experiences with friends and family, countering the negative publicity of the past.<\/span><\/p>\n<p><strong>Source: <\/strong>United Airlines<\/p>\n <\/div>\n <\/div>\n[vc_empty_space height=&rdquo;25px&rdquo;][vc_column_text]\n<h3>Takeaway tips<\/h3>\n<p><span style=\"font-weight: 400\">This cautionary tale holds a lot of wisdom, but in order to achieve maximum customer retention, the three main takeaways you could glean from the United Airway&rsquo;s story are these:<\/span><\/p>\n<p>&#10004;&#65039; <span style=\"font-weight: 400\">Always apologise and rectify issues promptly (this also reduces <\/span><a href=\"https:\/\/startups.co.uk\/banking\/chargeback-vs-refund\/\"><b>chargeback and refund<\/b><\/a><span style=\"font-weight: 400\"> requests)<br>\n<\/span>&#10004;&#65039; <span style=\"font-weight: 400\">Offer compensation or incentives to regain trust<br>\n<\/span>&#10004;&#65039; <span style=\"font-weight: 400\">Implement changes to prevent similar issues in the future<\/span>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column]<\/p><div class=\"jumplink-anchor-section\">\n <div class=\"jumplink-anchor-pointer\" id=\"link-calculating-your-customer-retention-rate\"><\/div>\n<\/div>\n[vc_column_text]\n<h2>Calculating your customer retention rate<\/h2>\n<p><span style=\"font-weight: 400\">In order to measure your success with your new customer retention strategy, one of the first things you will need to know is how to calculate your rate.<\/span><\/p>\n<p><span style=\"font-weight: 400\">A <\/span><b>customer retention rate<\/b><span style=\"font-weight: 400\"> is a crucial metric that measures <\/span><b>the percentage of customers a business successfully retains within a specific period<\/b><span style=\"font-weight: 400\">, typically compared to the number of customers it had at the beginning of that period.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400\">This metric is a fundamental indicator of a company&rsquo;s ability to keep its existing customers engaged, satisfied, and loyal over time.<\/span><\/p>\n<p><span style=\"font-weight: 400\">The formula to calculate customer retention rate is as follows:<\/span>[\/vc_column_text]\n <\/p><div class=\"highlight-box\">\n <div class=\"highlight-box-decor\">\n <svg class=\"brush-stroke-svg brush-stroke-big\" preserveaspectratio=\"none\" viewbox=\"0 0 116 6\" version=\"1.1\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" xmlns:xlink=\"http:\/\/www.w3.org\/1999\/xlink\">\n <g stroke=\"none\" stroke-width=\"1\" fill=\"#ea0037\">\n <path d=\"M94.0845406,5.55784045 C93.4629887,5.58758734 92.7723755,5.58758734 92.2198849,5.64708111 C92.0127009,5.66195455 91.7824965,5.67682799 91.5062512,5.66195455 C89.5955547,5.58758734 87.6618377,5.5727139 85.7511411,5.67682799 C85.5669776,5.69170144 85.2446914,5.67682799 84.9914666,5.67682799 C82.8275451,5.66195455 80.6866442,5.63220767 78.4997023,5.67682799 C76.0825561,5.72144832 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59.2202597,5.01655435 Z M97.3194805,4.04095243 C97.0181818,4.00215539 96.6566234,4.00215539 96.3553247,4.00215539 C96.0238961,4.00215539 95.5418182,3.98275687 95.5116883,4.06035096 C96.0841558,4.099148 96.6264935,4.07974948 97.3194805,4.04095243 Z M97.0040743,4.04074932 C96.9438145,4.00195228 96.7027756,4.00195228 96.4014769,4.00195228 C96.130308,4.00195228 95.8290093,4.0213508 95.8290093,4.04074932 C95.7988795,4.07954636 96.130308,4.07954636 96.4014769,4.07954636 C96.6726457,4.07954636 96.9438145,4.07954636 97.0040743,4.04074932 Z M97.843095,5.03977318 C98.1745236,5.03977318 98.5059521,5.02037466 98.4155625,5.00097614 C98.3854327,4.98157762 98.1142638,4.98157762 97.9334846,4.98157762 C97.6623158,4.98157762 97.3610171,4.98157762 97.4212768,5.02037466 C97.4815366,5.02037466 97.7527054,5.02037466 97.843095,5.03977318 Z M10.7864935,4.05859596 C11.7205195,4.05859596 12.3231169,4.07799448 13.3174026,4.01979892 C12.3231169,4.03919744 11.7205195,4.0004004 10.7864935,4.05859596 Z M93.4369469,5.03977318 C93.5273365,5.03977318 93.7081157,5.02037466 93.7081157,5.02037466 C93.7382456,5.00097614 93.5574663,4.98157762 93.3766871,4.98157762 C93.2862975,4.98157762 93.1055183,5.00097614 93.1055183,5.00097614 C93.0452585,5.03977318 93.2260378,5.03977318 93.4369469,5.03977318 Z M64.6758363,6 C64.7963558,6 64.977135,6 65.0072649,6 C65.1579143,5.98060148 64.977135,5.96120296 64.7963558,5.96120296 C64.7059662,5.96120296 64.5854467,5.96120296 64.4950571,5.98060148 C64.5553169,5.98060148 64.6155766,5.98060148 64.6758363,6 Z M90.6789362,4.03643854 C90.5885466,4.03643854 90.4680271,4.01704002 90.3776375,4.01704002 C90.1365986,4.01704002 90.0160791,4.03643854 90.1667284,4.05583706 C90.2269882,4.05583706 90.4077674,4.07523558 90.498157,4.05583706 C90.5885466,4.07523558 90.6186765,4.05583706 90.6789362,4.03643854 Z M86.2696559,4.0213508 C86.0888766,4.0213508 85.9080974,4.0213508 85.7273182,4.0213508 C85.546539,4.0213508 85.4260195,4.04074932 85.4862792,4.04074932 C85.6369286,4.04074932 85.8478377,4.06014784 86.0286169,4.06014784 C86.1792662,4.06014784 86.2696559,4.04074932 86.2696559,4.0213508 Z\"><\/path>\n <\/g>\n <\/svg>\n <\/div>\n \n <div class=\"highlight-box-content\">\n <p><\/p>\n<p style=\"text-align: center\"><b>Customer retention rate<\/b> <b>formula<\/b><span style=\"font-weight: 400\"> =&nbsp;<\/span><\/p>\n<p style=\"text-align: center\"><span style=\"font-weight: 400\">(Number of Customers at the End of a Period &ndash; Number of New Customers Acquired During the Period)&nbsp;<\/span><\/p>\n<p style=\"text-align: center\"><span style=\"font-weight: 400\">Divide by Number of Customers at the Start of the Period x100.<\/span><\/p>\n<p><\/p>\n <\/div>\n <\/div>\n[vc_empty_space height=&rdquo;20px&rdquo;][vc_column_text]<b>To calculate the customer retention rate<\/b><span style=\"font-weight: 400\">, you subtract the number of new customers acquired during the period from the number of customers at the end of the period.&nbsp;<\/span>\n<p><span style=\"font-weight: 400\">Then, divide this result by the number of customers at the start of the period.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400\">Multiply the final figure by 100 to express the retention rate as a percentage.<\/span><\/p>\n<p><b>Let&rsquo;s break down each component:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400\"><b>Number of customers at the end of a period:<\/b><span style=\"font-weight: 400\"> this is the total number of customers you have at the conclusion of a specific time frame, such as a month or a year.<\/span><\/li>\n<li style=\"font-weight: 400\"><b>Number of new customers acquired during the period: <\/b><span style=\"font-weight: 400\">count the customers who have made their first purchase or engaged with your business for the first time during the same time frame.<\/span><\/li>\n<li style=\"font-weight: 400\"><b>Number of customers at the start of the period:<\/b><span style=\"font-weight: 400\"> this refers to the total number of customers you had at the beginning of the same time frame.<\/span><\/li>\n<\/ul>\n<h3>Interpreting your customer retention rate<\/h3>\n<p><span style=\"font-weight: 400\">A good rule of thumb is to aim for a customer retention rate of over 90% or more.<\/span><\/p>\n<p><span style=\"font-weight: 400\">A high retention rate (above 90%) indicates that a business is <\/span><b>excellent at keeping customers and fostering loyalty<\/b><span style=\"font-weight: 400\">.<\/span><\/p>\n<p><span style=\"font-weight: 400\">A retention rate between 80% and 90% is <\/span><b>considered good<\/b><span style=\"font-weight: 400\"> and signifies that your efforts are paying off in customer loyalty.<\/span><\/p>\n<p><span style=\"font-weight: 400\">A rate below 80% suggests <\/span><b>room for improvement<\/b><span style=\"font-weight: 400\"> in customer retention strategies.<\/span><\/p>\n<h3>Other key metrics to track<\/h3>\n<p><span style=\"font-weight: 400\">There are a few other key metrics that help you understand the fullest picture of your customer retention overall, including:<\/span><b><\/b><\/p>\n<ul>\n<li><b>Customer churn rate<\/b><\/li>\n<li><b>Customer lifetime value (CLV)<\/b><\/li>\n<li><b>Net promoter score (NPS)<\/b><\/li>\n<li><b>Conversion rates<\/b><\/li>\n<\/ul>\n<h3>Tools and techniques for analysis<\/h3>\n<p><span style=\"font-weight: 400\">You can also leverage <\/span><b>customer relationship management (CRM)<\/b><span style=\"font-weight: 400\"> software and <a href=\"https:\/\/startups.co.uk\/crm-software\/crm-analytics\/\" target=\"_blank\" rel=\"noopener\"><strong>data analytics to gain insights into customer behaviour<\/strong> <\/a>and preferences. Overall, we recommend <\/span><a href=\"https:\/\/startups.co.uk\/go\/hubspot\" data-cta-type=\"inline-link\"><b>HubSpot<\/b><\/a><span style=\"font-weight: 400\"> as <\/span><a href=\"https:\/\/startups.co.uk\/crm-software\/best-crm-for-small-business-uk\/\"><b>the best CRM software for small businesses<\/b><\/a><span style=\"font-weight: 400\">.<\/span>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column]<\/p><div class=\"jumplink-anchor-section\">\n <div class=\"jumplink-anchor-pointer\" id=\"link-conclusion\"><\/div>\n<\/div>\n[vc_column_text]\n<h2>Conclusion<\/h2>\n<p><span style=\"font-weight: 400\"><strong>Customer retention isn&rsquo;t merely an option<\/strong>; it is an essential strategy for nurturing sustainable growth.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400\">When you fully understand its importance, start diligently measuring the customer retention rate at milestones, and start implementing strategies designed to delight customers while artfully sidestepping the pitfalls &ndash; this is when you will be able to cultivate the relationships your business needs to thrive.<\/span>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column]<\/p><div class=\"jumplink-anchor-section\">\n <div class=\"jumplink-anchor-pointer\" id=\"link-faqs\"><\/div>\n<\/div>\n<div class=\"faq\">\n <span class=\"faq-title\">\n Frequently Asked Questions <\/span>\n <ul class=\"faq-list\">\n <li class=\"faq-item\">\n\n <span class=\"faq-question\">\n What is customer retention? <\/span>\n\n <div class=\"faq-answer\">\n Customer retention is the practice of maintaining an ongoing relationship with your existing customers, ensuring they continue to choose your products or services over time. <\/div>\n<\/li>\n\n\n<li class=\"faq-item\">\n\n <span class=\"faq-question\">\n Why is customer retention important? <\/span>\n\n <div class=\"faq-answer\">\n It&rsquo;s much easier to retain an existing customer and get them to by either more products or new ones, than it is to find new customers &ndash; both in terms of time and money. This has been proven time and time again as one of the most effective ways to boost business profits with better efficiency. <\/div>\n<\/li>\n\n\n<li class=\"faq-item\">\n\n <span class=\"faq-question\">\n What are the main pitfalls when it comes to customer retention? <\/span>\n\n <div class=\"faq-answer\">\n The most common pitfalls when it comes to customer retention are ignoring customer feedback, inconsistent communication and poor customer service. <\/div>\n<\/li>\n\n\n <\/ul>\n <script type=\"application\/ld+json\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@type\":\"FAQPage\",\"mainEntity\":[{\"@type\":\"Question\",\"name\":\"What is customer retention?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"Customer retention is the practice of maintaining an ongoing relationship with your existing customers, ensuring they continue to choose your products or services over time.\"}},{\"@type\":\"Question\",\"name\":\"Why is customer retention important?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"It\\u2019s much easier to retain an existing customer and get them to by either more products or new ones, than it is to find new customers \\u2013 both in terms of time and money. 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In the marketing and business world, survival isn&rsquo;t just about attracting fresh faces&mdash;it&rsquo;s about holding onto the treasure [&hellip;]<\/p>\n","protected":false},"author":91509,"featured_media":153464,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[4515],"tags":[4564],"acf":[],"yoast_head":"\n<title>Customer Retention: How To Keep Customers Delighted<\/title>\n<meta name=\"description\" content=\"One steadfast and loyal customer is better than two new, unloyal ones. In this expert business guide, learn how to ace customer retention.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/startups.co.uk\/crm-software\/customer-retention-strategies\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Customer Retention: How To Keep Customers Delighted\" \/>\n<meta property=\"og:description\" content=\"One steadfast and loyal customer is better than two new, unloyal ones. 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