Customer retention occurs when a company plans a set of loyalty strategies and actions with the aim of maintaining its current consumers in the long term.
In other words, it is your company's ability to retain - for a given period - customers who have already made a purchase.
Therefore, we can say that for a company to grow successfully, it is not enough to invest in attracting new customers. Current customers must be satisfied so that they continue to buy more and recommend your business to other people.
In fact, word of mouth advertising is the most common way people receive news from friends and family; not to mention that, according to a study carried out in 2020 , nearly 38% of ecommerce users in Chile said they look for product or service reviews on social media before making a purchase. In Mexico, 27% of users said the same.
Furthermore, it is through taiwan phone number lookup the customer retention rate that you can assess the state of your customer service , which is so important in today's world for maintaining a business. After all, satisfied customers are like the heart: essential for the existence of a business.
Below we list some of the benefits of customer retention and some statistics on the subject.
1. Increase in sales
Customers who are loyal to your brand tend to buy more than new customers.
Some data proves it:
74% of customers feel loyal to a particular brand or company;
52% of customers say they have gone out of their way to purchase products from their favorite brands. ( Zendesk Customer Experience Trends Report 2020 ).
When you work to retain the customers you already have, you already know their spending habits ; this way, you can plan more efficient strategies that will bring you more success and sales.
2. Better communication
One of the keys to communication is knowing your customer and your customer knowing you. Consequently, customers who already know your brand feel more comfortable communicating with you, once they know your entire customer experience process.