Customer retention rate measures the percentage of customers a company is able to keep over a given time period. Retention rate is the percentage of customers a company has lost over a period of time.
Retention rate is a key metric a lot of companies look at to determine customer service efficiency. It’s calculated by measuring the total number of customers a company has and comparing that to how many are lost and acquired during a certain time period. You’ll need to look at three metrics:Number of customers at the end of a period
- Number of new customers acquired during that period
- Number of customers at the start of that period
How do you get a good customer retention rate?
1. Know your audience
2. Share your customers’ values
3. Use positive reviews to reinforce beliefs
4. Engage with customers
5. Embrace new technology
6. Communicate on the right platform
7. Educate your customers
8. Resolve customers’ issues the first time they contact you
9. Make customer service a company-wide priority
10. Give customers a premium experience
11. Invite customer feedback
12. Offer exclusive rewards
13 Offer a subscription service
14. Reward loyalty
15. Make transactions convenient
16. Respect your customers’ time
17. Deliver consistently good service.
Credit: Yaniv Masjedi