What is retention?
Retention, in business terms, means the exact as it does in English language. Retention means that when you provide your existing customer with more customer services and support, and in addition, provide them with special offers, they tend to remain your customers for a long period of time. This is what marketers define as loyal customers.
Loyal customers not only add to the profit of your company and increase your revenue. Through the word of mouth, they advertise your company. As per research, it costs almost 5%-25% less to spend more on retained customers than to hunt for new customers.
Frequently asked questions
How do you define retention?
Retention manifests itself in the fact that if you offer a specific person satisfactory solutions, products, services, support, they stay with you for a long time. Retention increases the company's profits and revenues.
What are the types of retention (employee/customer)?
There are two types of retention in companies. The first is about customers, i.e. customers who are satisfied with the product or service, have a good customer service experience, will come back and buy again from the company. The second of this retention is retention among employees, which in this sense means a change. The smaller the change of employees, the better it speaks for the company.
Is retention important for businesses?
Retention is very important as it has a huge impact on the company's bottom line as well as its image. That is why every company should ensure that both customer and employee retention is at the appropriate level.
Expert note
Retention is key to long-term success in business. Keep your customers satisfied and loyal to increase profits and build a strong brand.
Archiving is a tool that helps to clean up memory and optimize help desk software by transferring data to a rarely used repository. It is possible to archive resolved or closed tickets and emails after a certain time. Archiving runs automatically and helps to separate active and archived requests. In LiveAgent, you can archive all communication on social media, and the software offers an archive option that optimizes memory and separates active and archived requests.
Effective customer engagement strategies to improve retention
The article explores customer engagement strategies to improve customer retention and build a strong customer base. Social media can be used as a powerful customer engagement tool by sharing ideas, creating helpful content, and gathering customer data. Communication tools like LiveAgent help teams respond faster to customer needs across various channels. Other strategies include reaching out to quiet customers, rewarding engagements, and creating a fan club to cultivate brand ambassadors. To measure success, customer retention metrics like repeat customer rate, average order value, and purchase frequency should be monitored. The article concludes that a well-thought-out engagement strategy is essential for long-term business success.
How to build a steady and loyal customer base
Building a steady and loyal customer base doesn’t happen overnight, but what does? Read the Top 20 tactics to increase customer retention.
Creating a customer-focused culture is vital for businesses to succeed in a highly competitive market. Customer orientation is a business strategy that prioritizes customers above competitors, and it has been shown to increase profitability by 60%. A customer-centric culture benefits both the business and employees, as it creates loyal customers who are more likely to purchase repeatedly and recommend the company to others. To become more customer-centric, businesses can collect customer feedback, encourage referrals, nurture loyalty through rewards, and use language that reassures customers. Examples of companies with a customer focus include Microsoft, Electronic Arts, and McDonald's.
