In this article, we'll take a closer look at customer retention, including how telegram free number philippines to calculate your retention rate, why it's so important, and strategies you can implement to increase retention across the board.
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What is customer retention?
Customer retention is the act of keeping people who return after their initial conversion as customers.
What you want is not for every customer to discover your product, think it's great, and only buy once: you want loyal customers who come back again and again, and who love your brand so much that they sing your praises to their friends and family.
Why is customer retention important?
You want your retention rate to be as high as possible. Not only does this ensure maximum profitability, it lets you know that your marketing is solid, the quality of your product or service is strong, and your communications are targeting the right audience.
Customer loyalty is the best way to grow your business at an affordable cost.
A high retention rate also increases profitability. You don’t have to run costly campaigns that push users into the digital sales funnel with every purchase, allowing you to reduce ad spend on your acquisition campaign.
When you market to repeat customers, you have a 60-70% success rate , compared to a 5-20% success rate at most when selling to new customers. It also costs 5-20 times less to retain existing customers than to acquire new ones.
What is customer retention rate?
This rate tells you what percentage of your customers you retain (or return to you) over a given period of time. It is the opposite of “churn,” which tells you how many customers you lost over a given period of time.
How to calculate retention rate?
Every online and e-commerce business should monitor their retention rate. It can help them design marketing campaigns and address pain points that cause customer dissatisfaction.
Fortunately, calculating your retention rate is relatively simple. Here’s the formula to follow: