{"id":14170,"date":"2020-10-14T15:00:05","date_gmt":"2020-10-14T20:00:05","guid":{"rendered":"https:\/\/www.invespcro.com\/blog\/?p=14170"},"modified":"2026-01-20T03:28:53","modified_gmt":"2026-01-20T03:28:53","slug":"customer-retention-strategies","status":"publish","type":"post","link":"https:\/\/www.invespcro.com\/blog\/customer-retention-strategies\/","title":{"rendered":"Customer Retention: 5 Powerful Strategies That Guarantee Growth"},"content":{"rendered":"Reading Time: <\/span> 12<\/span> minutes<\/span><\/span>

What\u2019s a good customer retention rate in the eCommerce space?<\/p>\n

In an ideal world, it\u2019s 100%.<\/p>\n

But ours is not an ideal world, so a 100% retention rate is difficult to achieve.<\/p>\n

We live in a world where businesses often lose touch with existing customers in pursuit of new ones.<\/p>\n

How sad!<\/p>\n

I get it, acquiring new customers is great, but retaining existing customers is sweet.<\/p>\n

Imagine not having to worry about the cost of social advertisements, Google AdWords, and more marketing efforts that go into acquiring one new visitor.<\/p>\n

So, to answer the above question, I’d say a healthy customer retention rate is the one that is always improving<\/strong>.<\/p>\n

If you managed to retain five customers this month, next month you have to make it above five.<\/p>\n

But for all that to happen, you need to have a solid customer retention strategy that works.<\/p>\n

Today, we will look at five powerful customer retention strategies that you can use, right away, to decrease your churn rate.<\/p>\n

What is a Customer Retention Strategy?<\/h3>\n

In short, a customer retention strategy is a process used by businesses to enhance customer lifetime value<\/a> and customer loyalty.<\/p>\n

Nowadays, having a customer retention strategy in place is a smart way of cutting costs as it is cheaper to retain customers than to acquire new ones.<\/p>\n

Considering how expensive it is to acquire more customers, small businesses should have several retention strategies in place if they want sustainable growth.<\/p>\n

With a customer retention strategy in place, you don’t have to spend big on your marketing efforts. All you have to do is please your existing customer, strengthen your customer relationships and they will keep on coming back.<\/p>\n

With that said, here are the five customer retention strategies that are easy to implement:<\/p>\n

1. Personalize Customer Experience<\/strong><\/h3>\n

It\u2019s impossible to talk about creating long-term loyalty without mentioning this marketing buzzword: personalization.<\/p>\n

There\u2019s no better way of showing customers that you care for them than catering to their exact<\/strong> needs and wants. It\u2019s actually a good way of making customers feel<\/strong> more connected to the brand.<\/p>\n

When we talk about personalizing the customer experience, we are simply referring to designing or producing services and products to meet the customer\u2019s individual<\/strong> requirements.<\/p>\n

If you think of customer experience personalization as mentioning the users by names in your subject lines, you\u2019d be actually limiting its power. Real personalization goes beyond knowing the users\u2019 names. According to Paul Gillin<\/a>:<\/p>\n

\u201cPersonalization is pointless without knowing the individual. Understand the dreams, hopes, and fears that motivate your customers then hit them where it counts.\u201d<\/p><\/blockquote>\n

Customer experience is actually embedded in Amazon\u2019s DNA. The ecommerce giant\u2019s personalization of the customer shopping experience began in 2010 when it started recommending products to its customers through a data-driven \u201crecommended for you\u201d widget.<\/p>\n

\"\"As you can from the above image, Amazon customers are recommended offers according to their purchase history. This type of personalization not only increased customer satisfaction but also enhanced loyalty and repetitive purchases by 56%<\/a>.<\/p>\n

Amazon\u2019s attempt to personalize doesn\u2019t start and stop with customizing the recommendation widget. This personalization trailblazer has employed the use of <\/span>machine learning, artificial intelligence<\/span>,<\/span><\/a> and predictive analytics in its customer experience personalization ploy.\u00a0<\/span><\/p>\n

At its core, personalizing the customer experience is all <\/span>about keeping customers happy and satisfied in their association with your brand. This is why it should always remain a constant effort.\u00a0<\/span><\/p>\n

Just like Amazon, Netflix is also an internet behemoth that uses AI and machine learning to personalize its customer experience.\u00a0<\/span><\/p>\n

\n
\"\"<\/div>\n<\/div>\n

In fact, according to <\/span>Netflix Research<\/span><\/a>, personalization is one of the company\u2019s pillars that allows each member to have a different experience\/view of content that is displayed on the site.\u00a0<\/span><\/p>\n

Unlike Amazon, Netflix doesn\u2019t only depend on algorithms to fuel personalization, but it also uses the prowess of content to give a positive customer experience. Netflix also uses content to map the success or failure of its recommendations on the basis of how users are liking or disliking them.\u00a0<\/span><\/p>\n

Okay, enough about internet giants!\u00a0<\/span><\/p>\n

So, how can you deliver a personalized customer experience on your website?\u00a0\u00a0<\/span><\/p>\n

Well, first and foremost, you should first understand the moments of struggle that have led customers to purchase your product or a competing product.<\/span><\/p>\n

To do that, you\u2019d need to interview customers using the Jobs-to-be-Done framework<\/a>. That will help you to bring them back to those struggling moments.<\/span><\/p>\n

Side note<\/b>: <\/span>Jobs-to-be-Done is the Clayton Christensen framework that marketers now use to uncover what progress the customer is trying to make in a given circumstance and what the struggling moments the customer is trying to solve. This framework explains that when customers buy a product, they essentially \u201chire\u201d it to help them do a certain job. If the product does a good job, the next time they get confronted with the same job again, they tend to hire that product again. But if the product does a crummy job, they \u201cfire\u201d it and look for an alternative.<\/span><\/i>\u00a0<\/span><\/p>\n

So how do you run interviews that produce reams of personalization ideas?<\/span><\/p>\n

At Invesp, we use some of these tactics to find actual struggling moments when interviewing our clients\u2019 customers:<\/span><\/p>\n

    \n
  1. We start by interviewing people who have purchased<\/b> and used our client\u2019s product or another product that is similar to it.<\/span><\/li>\n
  2. Have two interviewers. <\/b>That way, while you\u2019re jotting down a note or thinking about a response, your interview partner can jump in and ask follow-up questions.<\/span><\/li>\n
  3. Ask them specific questions about their <\/b>struggles<\/i><\/b>. For example, instead of asking them why, ask when \u2013this will make them take you to the exact moment they thought about your product and this makes you see the struggle.<\/span><\/li>\n
  4. Avoid assumptions<\/b>. We may think that a person is doing their taxes while sitting at home, when in fact, it\u2019s the week before taxes are due, they\u2019re on a cramped airplane that\u2019s about to land, and they\u2019re desperately trying to finish before the steward comes by and tells them to close their laptop.<\/span><\/li>\n<\/ol>\n
    \"\"<\/div>\n

    This level of detail is a treasure trove of personalization ideas to pull from. I mean as we talk with customers about their Job-to-be-Done, we\u2019ll start to hear what words customers use to describe their own struggle. We can then use these words to craft our hyper-personalized email campaigns so when a customer reads the emails, it resonates with them.<\/span><\/p>\n

    2. Conduct #JTBD interviews & use Surveys to validate<\/b><\/h3>\n

    I have already mentioned that customers have expectations about your product or service. If you are to keep them coming back to your store, it\u2019s important to meet those expectations.\u00a0<\/span><\/p>\n

    This is where the #JTBD interviews come in.\u00a0<\/span><\/p>\n

    With #JTBD, you can understand:\u00a0<\/span><\/p>\n