Tired of chasing new customers when you've got a whole bunch of them already?

You are not alone in this. A lot of people forget about the existing customers, and also forget that keeping them happy is way easier and cheaper than finding new ones.

This is where customer retention comes in. And we’ve compiled a list of them to help you get the most out of your existing audience to turn casual customers into raving fans.

Get ready to level up your customer game and watch your sales skyrocket.

Let’s go!

50 Customer Retention Strategies

1. Customer loyalty programs

Loyalty points are massively used by ecommerce companies. So if you are an ecommerce company, you can also use them. For the most part, loyalty points can be implemented on the website itself via a plugin or an add on. Using these loyalty points customers can redeem discounts or prizes which encourages people to buy from your business.

In the image, we are showcasing a loyalty program operated by one of our long term clients. As you can see, this plays a massive role in their customer retention, as the expiration date encourages people to buy more frequently.

2. Exclusive discounts for returning customers

Your inactive customers are a goldmine waiting to be utilised. Almost all of our HubSpot clients have a system in place that deals with their inactive customers. If you use any software, you can set them up by setting an inactivity filter, which will trigger an email sequence to be sent. 

In this specific case, we have provided the inactive customers with a 15% coupon that they can use for 1 month on any purchases. If you can provide a similar one, you will see a massive increase in returning customers. In any case, offering them something will achieve a similar result.

3. Birthday and anniversary rewards

You treat your loyal fans to special deals they won't find anywhere else. These special deals will surely bring a smile to their face.

In this image, we are providing a birthday special offer to a client’s customers. This is done in HubSpot, but you can also use any email marketing tool like ActiveCampaign or MailChimp to do it as well.

4. Emphasise Sustainability and Corporate Social Responsibility (CSR)

Consumers are increasingly conscious of environmental and social issues. But, we can take advantage of this fact.

If we commit to sustainability and CSR, we will have a strong message for ourselves, and to our customers that we care about the environment. In turn, they will care about a company that shares their value, which is you.

And sustainability is a great cost cutting strategy for the future, especially in energy and practices. The paperless practices the world has had in recent years has increased efficiency and contributed to deforestation, and it is great for customers as they will continue to support green initiatives in the future.

5. Proactive customer service

It might sound a little gibberish at first, but trust me, it is way simpler once explained. Let me explain:

Proactive customer service simply means giving your customers options to encounter issues that they will probably face.

By using data analytics, you can see the issues they face the most, and solve them preemptively before they arise for new customers, or have a self-service system set up for that.

Also, you can monitor key performance indicators (KPIs) such as average response time, customer satisfaction, and first contact resolution rate to identify areas for improvement, and avoid them in the future.

6. Personalised email campaigns

Personalised email campaigns are the main point of modern customer relationship management. 

Using customer data, you can tailor email content to individual preferences, purchase history, and behaviour.

Whether it's recommending products based on previous purchases, or offering targeted discounts, these emails can make your customer feel strongly about your brand, and may keep them coming back to you.

Companies with active customer communities have seen a 20% increase in customer lifetime value.

7. Customer appreciation events

Customer appreciation events are a clear way you can show gratitude towards your loyal customers.

These events offer opportunities to build stronger relationships, gather valuable feedback, and create experiences. 

What’s even more amazing, you can even make these events a networking event between your customers! That way, you will even get customers to come here to meet business connections, and they’ll thank you for it!

8. Gamification elements

Gamification means a fun and engaging customer journey. By having game-like mechanics, you can motivate customer behaviour, increase brand interaction, and drive loyalty.

Here are some of the gamification you can use:

• Points for purchase
• Badges for specific tiers of purchase quantity
• Leaderboard of monthly purchases
• Challenges that give out small gifts and doesn’t involve active purchases

9. Easy return policies

A hassle-free return policy is absolutely necessary for building trust.

If you have a clear and easy return or cancellation policy, it will massively reduce purchase anxiety, therefore will encourage people to buy from you for a second time.

Flexible return windows, free shipping for returns, and clear return instructions are the three main things you can do for your clients to make them come back to you over and over again.

Bonus advantage, it will also encourage your customers to buy newer products from you!

10. Free shipping for loyal customers

Free shipping isn’t for every business, granted.

But, if you can provide free shipping, you can bet it will insanely increase your customer retention rate. Because it will reduce their cost, therefore increasing their willingness to purchase your products.

Free shipping can be offered as a tier-based benefit within a loyalty program or as a standalone reward for reaching specific purchase milestones.

11. High-quality customer service training

If you are a service business, this will play a serious role in your longevity as a business.

Well-trained employees can handle customer inquiries effectively, resolve issues faster, and build strong relationships with your customers. If you give them the knowledge, skills, and tools they need to succeed, you can surely sleep in peace knowing they are doing their job to the best of their ability.

There are a lot of blogs and training out there that will help you train your customer service team. We, ourselves, took help from this Zendesk blog you can use.

12. Mobile app for easier access

Regardless of what industry you are in, you can always benefit from a mobile app that supports your business, and customers can have a one-stop access for you. Here are some facts about mobile apps:

• The average session length on a mobile app is about 5 minutes, whereas on a website, it’s only 3 minutes.
• Conversion rates on mobile apps are typically 3 times higher than on mobile websites.
• Apps are often opened 2-5 times more frequently than mobile websites.
• A significant advantage of apps is the ability to send push notifications, which can re-engage users effectively.

13. Community forums or groups

A strong online community will always increase customer loyalty and engagement. By creating forums or social media groups, you can enable community-based interactions, and even enjoy your communities' ability to solve problems on your behalf!

Encouraging user-generated content can also help your business get good content on a regular basis and help grow your company.

A study by Forrester found that companies with active online communities have 40% higher customer retention rates.

14. Regular product updates

Regular product updates, features, or improvements are vital for generating interest and driving sales.

Regular product updates can be delivered through email, social media, or a dedicated product update page on the website.

Also, providing transparent information about product development means you care about customer satisfaction and innovation, which will make them care about your product.

15. Exclusive early access to new products

Offering exclusive early access to new products is a powerful way to reward loyal customers.

By granting select customers the opportunity to experience new products before the general public, you can create a sense of exclusivity and build anticipation. Early access programs can also provide valuable feedback on product performance.

16. Retargeting ads

Retargeting ads allow businesses to reconnect with potential customers who have shown interest in their products or services.

Retargeting ads are a bit advanced to set up and often it is troublesome to figure out, but once you get that up and running, retargeting ads are clearly one of the best ways of customer retention.

You can set up retargeting ads to:

• Website visitors
• Cart abandoners
• Product viewers
• Customers who made a purchase

For effective retargeting, you should always carefully segment audiences and be compelling. If you think you are not the right fit to properly design a retargeting ad, getting help from a marketing agency is always a good idea.

17. Efficient and fast problem resolution

Do you know?

A study by American Express found that 70% of consumers are willing to spend more on companies that offer excellent customer service.

Do I need to tell you more about why fast problem solving is important?

As for how you can do it, HubSpot has a ticket system that will send your reps notifications everywhere as soon as a new case comes in. You can set up prioritisation, skill based assignments and anything you want in HubSpot. Zendesk is also an amazing software that lets you do those things.

18. Transparent communication

Open and honest communication is necessary if you want your customers to trust you.

Providing clear and timely information about product features, order status, and issue resolution can significantly improve customer satisfaction.

Transparent communication also involves being upfront about limitations, potential issues, and any changes in service.

A lot of research is done and those always establish that customers appreciate truthful information, and they really, really don’t like it if you are not truthful.

19. Multi-channel support (phone, email, chat)

Offering multiple channels for customer support means accessibility and convenience for your customers. And who wouldn’t like that?

A study by Zendesk found that 49% of customers prefer fast response times, even if they have to pay more to get it.

If you can provide a plethora of options for support, you can provide fast response everywhere. And if you use HubSpot, you can connect all the channels above to a SINGLE inbox and reply from there! HubSpot is even working to connect SMS as a channel as well!

20. Customer retention software

A customer retention software can provide valuable insights into customer behaviour, preferences, and purchase history.

This data can then be used to create personalised marketing campaigns, identify at-risk customers, and improve customer engagement. 

All software you see on the list, which is our specialty, can be used to do just that! You can also use Marketo, Oracle, or SAP for this.

21. Seasonal promotions

By offering limited-time discounts, special offers, or exclusive products during specific times of the year, you can create a sense of urgency.

And people like to own one-of-a-kind things.

Research has shown that seasonal promotions can boost sales by an average of 10-20%.

22. Regular newsletters

Regular newsletters keep customers informed about product updates, promotions, company news, and industry trends. They can also be used to share valuable content, such as tips, tutorials, or case studies. 

Newsletters are also extremely popular and cheap to set up and run. An entry level marketing executive and a copywriter can keep a newsletter running for the foreseeable future. All you need to do is change the design once a couple of months.

23. Account managers for key clients

Sometimes, you have to go above and beyond for the top 10% of your company. A dedicated account manager can be just that.

We at HubXpert have always had dedicated account managers, even for our teeny-tiny clients. And it works wonders for us because the account managers are able to form deep and meaningful relationships that the general employees can’t.

Regardless of what industry you are in, you should always have account managers to at least your top customers.

Studies have shown that having a dedicated account manager can increase customer satisfaction by up to 25%.

24. Continuous improvement of products/services

If you have a Saas business, you live by this motto.

But even if you don’t, you should still invest however you can into research and development. That way, you can stay ahead of competitors and meet evolving customer needs.

As an ecommerce business, you can maybe add new products, or come up with new product versions. As a service business, you can improve the quality of your service, and gain a lot of benefit from it. 

25. Providing value beyond the product

Some unexpected value can go a long way into establishing your long-term relationship with the customers.

You can host Q&A sessions with industry experts for your customers, you can share industry-specific information and updates to a channel they visit often, or even maybe to your social media. Providing access to your proprietary data can also be your way of showing appreciation to high value customers and/or clients.

26. Partnering with other companies for exclusive benefits

Partnering with complementary businesses can insanely enhance your value proposition.

For instance, a gym partnering with a nutritionist can provide members with personalised meal plans, or a tech company collaborating with a travel agency can offer exclusive discounts on flights and hotels. These strategic alliances will definitely increase customer satisfaction, and also attract new customers.

A study by Nielsen found that 61% of consumers are more likely to choose a brand that offers partnerships with other companies they trust.

27. Special promotions for long-term customers

Recognizing the value of long-term customers is crucial for loyalty.

Special promotions for this customer segment show appreciation and encourage them to stay with you.

For example, a coffee shop might offer a free pastry to customers who have made ten purchases within a month, or a clothing retailer could provide a percentage off for customers who have been members of their loyalty program for a year.

A Bain & Company research indicates that increasing customer retention by just 5% can increase profits by 25% to 95%.

28. Live chat support

In today's fast-paced digital landscape, customers expect immediate responses. Live chat support has been established as an essential tool for businesses to provide real-time assistance.

Live chat allows for quick problem solving, provides opportunities for upselling or cross-selling, and enables businesses to gather valuable customer feedback. 

With HubSpot, you can establish a live chat as soon as it takes you to make a cup of coffee! You can also create a number of bots that will be tailored to a specific need. That might require a bit of expert help.

29. Regularly updating FAQ sections

A well-maintained FAQ section is a cornerstone of excellent customer service.

By providing clear answers to common customer questions, you can reduce support ticket volume and empower customers to find solutions independently. Regularly updating the FAQ section with new questions and answers ensures that it remains a valuable resource.

Also, using clear and simple language, organising questions into categories, and providing search functionality can enhance the overall user experience.

30. Offering financing options

Offering flexible financing options can significantly impact purchasing decisions. 

If you provide customers with various payment plans, you can make high-ticket items more accessible and encourage larger purchases. This strategy can increase average order value, improve customer satisfaction, and make your customers loyal.

Also, partnering with reputable financial institutions can enable more financing processes and build trust with customers.

31. Engaging in social listening

Social listening means monitoring online conversations to understand customer sentiment, identify trends, and gather insights.

By actively listening to what customers are saying about you, your competitors, and the industry as a whole, you can make data-driven decisions to improve products, services, and marketing strategies. 

Companies that effectively use social listening can improve customer satisfaction by up to 20%.

You can use HubSpot for this purpose as well. Otherwise, you might need a separate tool like Brand mentions, SpyFu, or Buzzsumo.

32. Rewarding customers for completing surveys

A survey by Qualtrics found that 77% of customers are more likely to do business with a company that actively seeks customer feedback.

Surveys are the easiest way to know what to do because the customers tell you themselves what they want to come and go. Then. you just do that, and customers will automatically be happy.

Rewarding customers simply means you have more submissions, which will automatically be a good thing because you simply have more information about what your customers want.

33. Offering product customisation options

Providing customers with the ability to personalise products or services means you have a commitment to meeting individual needs and preferences. This approach can also differentiate a brand from competitors and increase perceived value.

Product customisation can come in various forms, in Saas, you can even give the customers ability to change the physical appearance of the software or give them a toolkit to edit their own stuff.

Effective product customization requires careful planning, including identifying popular customization options, setting clear guidelines, and ensuring efficient production processes.

A McKinsey study found that companies offering product customization can achieve a price premium of up to 10%.

34. Providing usage analytics for customers

Usage analytics is one of the easiest things you can provide because you have that data anyway and you are using it for your own decision-making. All you have to do is create a dashboard on the customer/client end and show them their data.

Usage analytics can help customers understand product performance, identify areas for improvement, and optimise their usage. For example, a fitness app could provide users with detailed analytics on their workout routines, allowing them to track progress and set goals.

A study by IBM found that 75% of consumers are willing to also share personal data in exchange for personalised recommendations and services.

35. Offering customer-only content

You can provide additional value, foster a sense of community, and deepen relationships by simply marking some good blogs and podcasts as “customer-only”. Customer-only content can include behind-the-scenes insights, expert advice, or even early industry news.

For example, a streaming service might offer exclusive interviews with actors or directors for subscribers, or an ecommerce store can include a special discounted section, or even a secret product list for previous customers.

Exclusive content can increase customer engagement by up to 30%, according to a study by Epsilon.

36. Running regular contests or giveaways

We all love a bit of contest or a giveaway, these are small fun things that create excitement. And what brand doesn’t want to be associated with fun things?

If you offer attractive prizes, you can generate a lot of hype around you, especially if the contests are aligned with some of the other points in this blog. Which will make a lot of people look your way, especially new customers.

These campaigns can also be used to collect customer data, such as email addresses, for future marketing efforts.

Contests and giveaways can increase website traffic by up to 300%, according to a study by Offerpop.

37. Free upgrades for loyal customers

Rewarding loyal customers with free upgrades shows appreciation and incentivises continued business.

By offering enhanced features or product versions for free, you can improve customer satisfaction and encourage repeat purchases.

For example, a software company might offer a free upgrade to the premium version of their product for customers who have been subscribers for a year, or even give them an add on for free.

A study by Adobe found that 79% of consumers are more likely to recommend a brand that offers loyalty programs with exclusive perks.

38. Implementing a feedback response system

A feedback response system makes your brand connect with your customers. It humanises your brand.

It also shows your commitment to continuous improvement. Implementing a system for collecting feedback, analysing responses, and taking action on customer suggestions is all it takes for your brand to be remembered fondly in conversations. And you know what that often results in.

Companies that actively respond to customer feedback can improve customer satisfaction by up to 25%.

39. Creating how-to guides and tutorials

Providing customers with easy-to-follow instructions can significantly enhance their product experience and reduce support inquiries. Creating comprehensive how-to guides and tutorials demonstrates a commitment to customer satisfaction and empowers customers to make the most of their purchases. These resources can be delivered through various channels, such as online help centers, product packaging, or video tutorials. By addressing common questions and challenges, businesses can build trust and loyalty.

A study by Salesforce found that 63% of customers prefer to find answers to their questions themselves before contacting customer support.

40. Offering Subscription-Based Models

Subscription boxes are a dynamic way to generate recurring revenue. If you are a Saas, chances are you are already offering subscription-based services. But, you can benefit from them even if you are a product-based company.

To maximise the impact of subscription boxes, consider offering customization options, allowing subscribers to pause or cancel their subscriptions easily, and leveraging data analytics to better your subscription offerings.

HubSpot is a good example of this as well. It might seem expensive at the beginning, but the amount of value you can get from HubSpot over a longer period of time is just absolutely mammoth.

41. Creating a Customer Advisory Board

Your customers know a lot about your product and industry. Because they are a part of it.

So why not simply ask them what you can do?

To effectively use a customer advisory board, establish clear objectives, select diverse members, and provide regular opportunities for feedback. Consider offering rewards for their participation and ensure that customer input is considered in the decision-making process.

Just remember, listen more than you talk, and show them you value their input.

42. Creating an affiliate program

Partner up with folks who love your stuff and watch the revenue skyrocket.

Offer competitive commission rates, provide ample resources and support, and track performance closely. Consider implementing tiered commission structures to reward top-performing affiliates.

If you want to build a successful affiliate program, you should also carefully select partners, ongoing tracking and optimization, and clear communication with affiliates.

Affiliate marketing can increase revenue by up to 15%, according to a study by Rakuten Marketing.

43. Offering “members only” products or services

Want your customers to feel like VIPs?

Providing access to limited-edition products, special features, or exclusive training can make your customers feel like VIPs. You can, this way, reward loyal customers and encourage increased spending.

Just make sure the perks are worth bragging about.

44. Personalised customer onboarding kits

First impressions matter, right? Blow your new customers away with a personalised welcome kit that's packed with value. It will set the stage for a long-term relationship.

Also give them essential product information, usage tips, and exclusive offers for complementary products, or your other products.

This way, you can help customers get the most out of their purchases. They will, in turn, help you by staying with you forever.

45. Offering a customer satisfaction guarantee

Show your customers you've got their backs with a no-fuss satisfaction guarantee.

It also means you have absolute confidence in your product or service, which will reduce purchase anxiety and encourage your customers to try out your product without risk.

Also, don’t forget to put in place clear terms and conditions for returns, refunds, or replacements.

And last but not least, make sure the process is easy, customers are not getting harassed into the satisfaction system, and you're ready to make things right in case they are.

46. Building a robust knowledge base

A knowledge base is almost a must-have for Saas or product developers.

Even if you’re not, providing detailed information about products, services, troubleshooting, and FAQs will never hurt your business.

For the most part, it will reduce support ticket volume, improve customer satisfaction, and enhance brand reputation. Which will save you money in the long run.

47. Give them exclusive access to events not related to your organisation

Partnering with other companies or organisations to offer exclusive access to events can provide significant value to customers.

Firstly, it says that you exist in an ecosystem, and not stand absolutely alone. This will make the customers think that as well, and you might get into their tech stack or daily commitments. That will ensure a lifetime value from these customers/clients.

This will also strengthen brand partnerships, which might even bring in new customers from the partner's side as well! Talk about two birds in one stone!

48. Integrating with customers’ favourite apps

If you have any sort of system to provide as a service or a product, it can always integrate with something your customers use.

For example, if you run an ecommerce site, you can offer a quickbooks integration that will send the purchase details to the customer’s QuickBooks account.

These integrations will also provide you with data you can use for your own analytics, and while they can be expensive to develop, the more integrations you have, the less money they will cost.

49. Implementing a Customer Lifetime Value (CLV) Focus

Customer Lifetime Value is mostly an assumption, but complete data, which you can get with software like HubSpot, Zendesk, or Marketo, can give you a pretty solid idea of your CLV.

CLV calculation can identify high-value customers and you can tailor your marketing efforts according to the CLV, and not their current purchase. If they feel they are getting treated better, they will in turn follow their true purchase potential.

50. Fostering Employee Engagement

Happy employees lead to happy customers.

If your employees are happy, it means they will be actively engaged in your business. Which in turn means they will give their 100% to your customers. If they are not happy, your customers might not get good service. That will definitely damage your reputation, and in extreme cases, will actively turn your customers against you..

So, always make sure your employees are happy and productive. Go the extra mile for your employees to make sure they get what they need..

How Do I Measure My Success?

Check the following metrics to see if your customers are sticking around, look at these key numbers:

• Customer Retention Rate: How many customers are still with you after a set period?
• Churn Rate: How many customers are leaving?
• Customer Lifetime Value (CLV): How much money does an average customer spend with you over time?

Also, don't just look at the big picture. Break down your customers into groups (like new vs. old, or by what they buy) to see where you're winning and where you need to improve.

Surveys, reviews, and social media can tell you what your customers really think. Are they happy? What could be better? Use this info to make changes.

Follow the money. See how much you're spending to get new customers (CAC - Customer Acquisition Cost) and compare it to how much those customers spend (CLV - Customer Lifetime Value). This will show you if your customer retention efforts are paying off.

What now?

Well, now that you are completely knowledgeable about customer retention, it’s time to put the theories to the test!