Measuring customer retention by customer
Retaining customers involves lesser costs than acquiring new customers.
Reacquiring lost customers is also at a lower cost than acquiring new customers.
Your current customers have been purchasing your products or solutions,
thus chances are they will purchase again.
Factors to continue their purchases:
- A good customer service or after service.
- Applying different marketing methods to keep their attention or interest.
If you have lost a customers, you need to find out what made them change vendor or supplier. The goal is to reacquire lost customers
Former customers can return to become customers again for many different reasons. In any case marketing can help.
Marketing methods for retention or reacquiring:
- Drip marketing:
Problem: the addressed people need to read your newsletters
Problem: they need to open and read your emails
- Calling regularly:
Problem: The decision makers need to take your phone call and have a chat with you
- Paying a visit: Problem: You need to get the appointment in order to meet the decision makers
- Advertising supporting the brand or products: Problem: They need to notice your advertisement. Being a customer or ex-customer chances are higher to be remarked.
Most solutions and companies measure the retention when the customer is
no longer buying.
This is too late as one should be able to react proactively in order not to loose the customer.
One of the sources of information is your website.
Both existing and lost customers can visit your website:
- By their own initiative for retrieving information
- By reading your newsletter on your website
- By clicking on a link in your email
- By reading your blog posts
This increase or decrease of interest can be measured by customer by:
- Pages visited
- Duration of visit
- Time on pages
- Repeat visits
- Origin of visit: direct hit or reference
Measuring customer retention for every customer can be achieved by implementing LEADSExplorer