Introduction

A grand marketing campaign or flashy advertisement might draw in thousands (or even millions) of prospective customers. But all would be for naught if the business has no effective customer retention strategies to turn these people into long-term brand advocates. 

Now that 2023 has ended and the global market is turning to a new chapter, it is high time your business comes up with new plans to build a solid emotional connection with current customers. Below are 7 excellent strategies that should work for any sector, compiled by our experienced specialists.

Top 7 Customer Retention Strategies for 2024

Contribute to the business’ growth with these client retention strategies (Image source: Pxhere). 

1. (Most Important!) Build Rapport Based On Shared Values

In a crowded marketplace, shared values help you stand out amidst the intense competition. 

Studies also reveal most customers choose brands that reflect and align with their beliefs. Once both parties find themselves on the same page, customers will voluntarily become vocal advocates for the brand, relying on word-of-mouth marketing to attract like-minded individuals.

Hence, built-in contact centers like StringeeX have become the go-to solutions for effective research. 

Agents can monitor customer interactions and brand mentions on multiple platforms (Facebook, Twitter, email, etc.) from one single interface. Based on real-time, constant data updates, analysts then define popular trends within all communication channels to determine which value draws their current customers to a particular product.

Below is a general guide to identifying shared values between your brand and customers: 

Step 1. Define the values that underpin your brand identity and guide your actions. What do you stand for? What matters most to your brand?

Step 2. Research your target audience to understand their values and aspirations. Here is where you can determine the common ground - where your values intersect and resonate with them.

Step 3. Next, integrate your values into every aspect of your brand: messaging, marketing, customer service, and product development. Most importantly, remember to let these values shine through every interaction with the customer.

Step 4. Align your values with broader social and environmental issues that resonate with your customers. By supporting social causes that customers genuinely care about, you can demonstrate your commitment to making a positive impact.

Step 5. Train your employees to understand and embody these values for an excellent customer service team. Make customers feel seen, heard, and understood by tailoring customer engagement to individual needs.

Case Study: The Story of Amul Girl

Amul, one of the iconic Indian food brands, perfectly exemplifies this strategy. The company ingrains its vocal support for rural development and local farmers into its dairy goods (milk, cheese, butter, etc.) and often offers fair prices for these products.

And that is not all; Amul takes another extra mile. Its classic mascot, Amul Girl, is often showcased with witty taglines that reflect current events or social issues in the country. This brilliant marketing strategy further boosts Amul’s popularity among the Indian audience, turning first-time customers into die-hard supporters.

2. Make Your Customers Tune In To New Changes

In many cases, repeat or potential customers simply drop your brand for another due to sheer boredom with its current services. One effective way to reduce the customer churn rate is to implement strategic refreshes, thereby reinvigorating the brand perception.

Even a simple update, like a brand-new website layout or store makeover, is enough to signal to customers that your business is committed to constant innovation and improvement. Of course, remember not to overdo it or incorporate these updates to your customer retention program too abruptly. In the worst-case scenario, you might lose actual loyal clients otherwise.

3. Build A Comprehensive Customer Profile

A comprehensive background of your long-term, existing customers helps you build a loyal customer base and distinguish them from one-time shoppers. 

Once all crucial information (such as lifestyle, gender, income, age, purchase history, previous interactions, etc.) is integrated into one comprehensive profile, it is easier to navigate their preferences and determine consistent buying patterns. From there, your business can adjust current or future customer loyalty programs more accurately. 

4. Be Approachable

People often assume the best services or products guarantee 100% market dominance. However, that is not always true. A small company might outsell an expensive product compared to your company just because customers find their materials and explanations much easier to comprehend! 

Long story short, the more approachable you are, the more likely your satisfied customers will stay. Over-explanations or convoluted buying processes will only drive them away. 

5. Treat Your Customers As Humans More Than Data

You should not rely purely on data to gain insights into customer behavior (Image source: Pxhere). 

Unsurprisingly, customers aren’t usually fond of chatbots or AI applications despite their raging popularity in recent years. Due to a severe lack of human empathy, these essential tools mostly react to common scenarios or specific keywords instead of adapting to personalized customer journeys.

Hence, regardless of businesses or sectors, remember that your customers are humans, not data. On the one hand, the scientific, data-driven analysis does give you actionable insights into their buying behaviors. On the other hand, it is only through direct, empathetic client interactions that you can understand the reasons behind their displeasure or contentment.

Does that mean businesses should get rid of automated, programmable contact centers like StringeeX completely? No. On the contrary, this pioneering technology solution actually helps smooth out the process and keep customers happy.

Since all communication platforms can be monitored conveniently on one interface, agents no longer have to waste time switching between multiple channels. 

StringeeX can also assign and distribute customer calls to different agent groups based on customized filters (e.g., customer data, agent expertise, agent’s working schedules, etc.), ensuring each customer receives the best services from the best agents that resonate with their needs.

And the best part is that most repetitive tasks are now automated. It means agents will have more time and patience to deal with complex customer complaints, resulting in better customer satisfaction and conversion rates.

6. Ensure A Positive Working Experience for Your Employees

Make extra effort to motivate your employees as well (Image source: Pexel). 

Do not just pay attention to customer experience. Happy, motivated staff are more likely to offer top-notch customer support and form solid brand-customer relationships.

Most employees content with their working environment will choose to stay longer with the company, saving you from lots of training expenses. Plus, their years of experience working with your business also reflect in their expertise, meaning they can tune in well to customer issues and offer the best solutions without wasting much time.

7. Build A Strong Community

Most successful brands create an online forum or group for their loyal customers, where everyone can interact and share their product-related experiences on a daily basis.

The benefits clearly go both ways. Customers will be more engaged with your brand, while you can gain direct access to their thoughts and address rising concerns (if any) immediately. Plus, with the help of StringeeX or similar virtual contact centers, monitoring all product mentions, customer feedback loops, customer reviews, etc.,  will never be easier. 

Some Customer Retention Metrics That You Should Know

1. Retention Rate

This number assesses your company’s ability to maintain current customers after a particular period of time. Use this formula: 

(Starting customers - New customers) / Starting customers * 100

Suppose you started with 100 customers, gained 20 new ones, and lost 15 within a year. Your customer retention rate would be: 

(100 - 15) / 100 * 100 = 85%

2. Customer Churn Rate

Customer churn refers to the percentage of customers who stop doing business with your brand within a specific time period.

Formula: (Lost customers / Starting customers) * 100%

Let’s say you start with 100 people and lose 15 unhappy customers in a month. Churn rate = (15 / 100) * 100% = 15%. 

The lower the churn, the better, as it indicates stronger customer retention.

3. Customer Lifetime Value (CLTV)

Businesses use CLTV to estimate the total revenue an individual customer generates during their entire long-lasting relationship.

The formula: 

Average Order Value * Purchase Frequency * Customer Lifespan

in which:

• Average Order Value: The average amount spent per purchase.
• Purchase Frequency: The average number of purchases per year.
• Customer Lifespan: The average number of years a customer stays with you.

Example: 

The customer’s average order is $50, purchased every 3 months and stayed 5 years. CLTV = 50 * 4 * 5 = $1,000.

Conclusion

Although certain adaptations are required for these customer retention strategies, they have been considered key metrics for business success in 2023 and will remain so in 2024. 

Customers’ disdain for chatbots or AI applications is not the cue to abandon them completely during workflow. Instead, you should assist your trained agents with automated platforms like StringeeX to satisfy customer expectations regardless of their preferences and needs.