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Customer Retention Strategies

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Jeff Hurt
Jeff Hurt

On average, U.S. corporations lose 10-30% of their customers every year. Raising customer retention rates by 5% can increase lifetime customer value by 25-100%. Customer loyalty is measured by their purchasing patterns and can range from undivided loyalty to indifference. Maintaining customer loyalty requires focusing on satisfaction, trust, and emotional bonding through consistent customer experiences. Successful customer retention strategies center around creating engaging experiences, transparency, education over sales, and prioritizing customer needs.

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Customer Retention Strategies
Customer Retention Strategies
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On average, U.S. corporations lose of their customers every 5 years. ~ Reicheld 8
An average company has a defection rate of 10%-30% per year. 9
Raising your customer retention rate by 5% can increase the lifetime value of average customer by 25% -100%. 10
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Customer On average, U.S. loyalty is a customer’s commitment or attachment to a brand, store, manufacturer, corporations lose service provider, or other entity. of their customers every 5 years. ~ Reicheld 12
Customer loyalty is measured by proportion of purchase a. Undivided loyalty: AAAAAAAAAA 13
Customer loyalty is measured by proportion of purchase a. Undivided loyalty: AAAAAAAAAA b. Occasional switcher: AABAACAABB 14
Customer loyalty is measured by proportion of purchase a. Undivided loyalty: AAAAAAAAAA b. Occasional switcher: AABAACAABB c. Switched loyalty: AAAAABBBBB 15
Customer loyalty is measured by proportion of purchase a. Undivided loyalty: AAAAAAAAAA b. Occasional switcher: AABAACAABB c. Switched loyalty: AAAAABBBBB d. Divided loyalty: AAABBBAABB 16
Customer loyalty is measured by proportion of purchase a. Undivided loyalty: AAAAAAAAAA b. Occasional switcher: AABAACAABB c. Switched loyalty: AAAAABBBBB d. Divided loyalty: AAABBBAABB e. Indifferent: ABCDADCBAC 17
On average, U.S. Customer loyalty includes: corporations lose a. A behavior regarding the product of their customers every 5 years. ~ Reicheld 18
On average, U.S. Customer loyalty includes: corporations lose a. A behavior regarding the product b. An attitude towards the brand/company. of their customers every 5 years. ~ Reicheld 19
Challenge with behavior as a loyalty criteria is a customer may repeat purchases because: a. Convenience, price, availability, or inertia due to habit. 20
Challenge with behavior as a loyalty criteria is a customer may repeat purchases because: a. Convenience, price, availability, or inertia due to habit. b. Purchases made w/out motive for choice 21
Attitude towards a brand is favorable that reflects preference & commitment expressed over time. Includes emotional attachment & positive evaluation 22
Behavior factorsaverage, U.S. On include: a. Choicecorporations lose b. History with company of their customers every 5 years. ~ Reicheld 23
On average, U.S. Attitudinal factors include: corporations lose a. Satisfaction b. Emotional Bonding c. Trust d. Risk reduction of their customers every 5 years. ~ Reicheld 24
On average, U.S. Customer satisfaction: A post-purchase evaluation that results from a lose corporations comparison between pre-purchase expectation and actual performance of their customers every 5 years. ~ Reicheld 25
Xerox found thataverage, rate of a 4 out of On a satisfaction U.S. corporations lose 5 were more likely to switch to competitor than those that rated 5. 26
Emotional Bonding: a. Brand affect, brand equity b. Company attachment 27
Emotional Bonding: a. Brand affect, brand equity b. Company attachment c. Feelings of closeness, affection trust & respect d. Technology limits emotional bonds. 28
Willingness of customer to rely on organization 29
Reduces uncertainty and risk 30
Honest, fair and unreasonable. 31
Customer Retention Strategies 32
1. Create A Culture Of Buzz! 33
If the marketplace isn't talking about you, there's a reason. The reason is that you're boring. And you're probably boring on purpose. You have boring pricing because it's safer...You have boring products because that's what the market wants. ~ Seth Godin 34
2. Consistency builds trust! 35
Customer retention is a long-term game, not a drive-by event. 36
Repetition, consistency & authenticity build trust and are the foundational tools of customer retention. 37
3. Trust most important factor to offer! 38
Lack of trust is the single greatest reason you can’t keep customers. 39
Trust is earned by keeping promises. Trust is lost by overpromising & under delivering. 40
When you’ve earned trust, you can make mistakes, own up to them and correct them without loss! 41
4. Staff as customer! 42
Your employees treat your customers the same way you treat the employees! 43
Must retain your best employees so you can retain your best customers. 44
5. Create an open dashboard. 45
One-page, high-level view of key strategic, marketing and financial indicators. 46
Transparency with employees key to company success and vision as well as customer retention. 47
6. Golden Rule Of Customer Retention: Give To Get Mentality. 48
Those who usually give…get! 49
Approach customer relationships by asking, "What am I here to give?" or "How can I serve?“ Not, “What can I sell you. 50
Develop a strategic partner relationship with a view toward adding value 51
7. Turn your attention to educating not selling. 52
Successful customer retention provides valuable content & education that shows how brand understands customer needs. 53
Content marketing strategy is critical here…providing useful and helpful content of value. 54
Customer Retention Strategies
• Schmoll Moch • ArkansasSupportsP • Francisco Cisirio hotography.com • Bullion Vault • Nettsu • Wildxplorer • CPThuh • Morgan Cito • Andreas Kollegger • Thomas Hawk • Mag3737 • FutUndBendl • Patrick Hoesly • Xose Castro • Danard Vincente • Bahman • Transcam
jhurt@velvetchainsaw.com velvetchainsaw.com @JeffHurt

More Related Content

Customer Retention Strategies

  • 1. 1
  • 5. 5
  • 6. 6
  • 7. 7
  • 8. On average, U.S. corporations lose of their customers every 5 years. ~ Reicheld 8
  • 9. An average company has a defection rate of 10%-30% per year. 9
  • 10. Raising your customer retention rate by 5% can increase the lifetime value of average customer by 25% -100%. 10
  • 11. 11
  • 12. Customer On average, U.S. loyalty is a customer’s commitment or attachment to a brand, store, manufacturer, corporations lose service provider, or other entity. of their customers every 5 years. ~ Reicheld 12
  • 13. Customer loyalty is measured by proportion of purchase a. Undivided loyalty: AAAAAAAAAA 13
  • 14. Customer loyalty is measured by proportion of purchase a. Undivided loyalty: AAAAAAAAAA b. Occasional switcher: AABAACAABB 14
  • 15. Customer loyalty is measured by proportion of purchase a. Undivided loyalty: AAAAAAAAAA b. Occasional switcher: AABAACAABB c. Switched loyalty: AAAAABBBBB 15
  • 16. Customer loyalty is measured by proportion of purchase a. Undivided loyalty: AAAAAAAAAA b. Occasional switcher: AABAACAABB c. Switched loyalty: AAAAABBBBB d. Divided loyalty: AAABBBAABB 16
  • 17. Customer loyalty is measured by proportion of purchase a. Undivided loyalty: AAAAAAAAAA b. Occasional switcher: AABAACAABB c. Switched loyalty: AAAAABBBBB d. Divided loyalty: AAABBBAABB e. Indifferent: ABCDADCBAC 17
  • 18. On average, U.S. Customer loyalty includes: corporations lose a. A behavior regarding the product of their customers every 5 years. ~ Reicheld 18
  • 19. On average, U.S. Customer loyalty includes: corporations lose a. A behavior regarding the product b. An attitude towards the brand/company. of their customers every 5 years. ~ Reicheld 19
  • 20. Challenge with behavior as a loyalty criteria is a customer may repeat purchases because: a. Convenience, price, availability, or inertia due to habit. 20
  • 21. Challenge with behavior as a loyalty criteria is a customer may repeat purchases because: a. Convenience, price, availability, or inertia due to habit. b. Purchases made w/out motive for choice 21
  • 22. Attitude towards a brand is favorable that reflects preference & commitment expressed over time. Includes emotional attachment & positive evaluation 22
  • 23. Behavior factorsaverage, U.S. On include: a. Choicecorporations lose b. History with company of their customers every 5 years. ~ Reicheld 23
  • 24. On average, U.S. Attitudinal factors include: corporations lose a. Satisfaction b. Emotional Bonding c. Trust d. Risk reduction of their customers every 5 years. ~ Reicheld 24
  • 25. On average, U.S. Customer satisfaction: A post-purchase evaluation that results from a lose corporations comparison between pre-purchase expectation and actual performance of their customers every 5 years. ~ Reicheld 25
  • 26. Xerox found thataverage, rate of a 4 out of On a satisfaction U.S. corporations lose 5 were more likely to switch to competitor than those that rated 5. 26
  • 27. Emotional Bonding: a. Brand affect, brand equity b. Company attachment 27
  • 28. Emotional Bonding: a. Brand affect, brand equity b. Company attachment c. Feelings of closeness, affection trust & respect d. Technology limits emotional bonds. 28
  • 29. Willingness of customer to rely on organization 29
  • 31. Honest, fair and unreasonable. 31
  • 33. 1. Create A Culture Of Buzz! 33
  • 34. If the marketplace isn't talking about you, there's a reason. The reason is that you're boring. And you're probably boring on purpose. You have boring pricing because it's safer...You have boring products because that's what the market wants. ~ Seth Godin 34
  • 35. 2. Consistency builds trust! 35
  • 36. Customer retention is a long-term game, not a drive-by event. 36
  • 37. Repetition, consistency & authenticity build trust and are the foundational tools of customer retention. 37
  • 38. 3. Trust most important factor to offer! 38
  • 39. Lack of trust is the single greatest reason you can’t keep customers. 39
  • 40. Trust is earned by keeping promises. Trust is lost by overpromising & under delivering. 40
  • 41. When you’ve earned trust, you can make mistakes, own up to them and correct them without loss! 41
  • 42. 4. Staff as customer! 42
  • 43. Your employees treat your customers the same way you treat the employees! 43
  • 44. Must retain your best employees so you can retain your best customers. 44
  • 45. 5. Create an open dashboard. 45
  • 46. One-page, high-level view of key strategic, marketing and financial indicators. 46
  • 47. Transparency with employees key to company success and vision as well as customer retention. 47
  • 48. 6. Golden Rule Of Customer Retention: Give To Get Mentality. 48
  • 49. Those who usually give…get! 49
  • 50. Approach customer relationships by asking, "What am I here to give?" or "How can I serve?“ Not, “What can I sell you. 50
  • 51. Develop a strategic partner relationship with a view toward adding value 51
  • 52. 7. Turn your attention to educating not selling. 52
  • 53. Successful customer retention provides valuable content & education that shows how brand understands customer needs. 53
  • 54. Content marketing strategy is critical here…providing useful and helpful content of value. 54
  • 56. • Schmoll Moch • ArkansasSupportsP • Francisco Cisirio hotography.com • Bullion Vault • Nettsu • Wildxplorer • CPThuh • Morgan Cito • Andreas Kollegger • Thomas Hawk • Mag3737 • FutUndBendl • Patrick Hoesly • Xose Castro • Danard Vincente • Bahman • Transcam