For any kind of business irrespective of its size or type, there is a need for a greater bonding with customers so that business can sustain for a long time. These days even the online B2B companies spend a lot of money on lead generation so that they can convert them into a potential customer.
One of the great ideas is to grow and strengthen customer relationships through customer loyalty programs, which are now gaining ground for both online as well as offline businesses. These programs are basically created so that they can suitably reward those customers who visit the business once again.
There are many different ways used for running such a loyalty program. Any smart and innovative loyalty program can certainly improve the customer base as well as repeat customers if they are executed effectively.
As per the survey conducted by a Nielsen group of the company where they have found that about 84% of customers have responded with an affirmative answer when they were asked whether they will engage with any company that offers them a loyalty program. However, such loyalty programs work well only if you know how you must cater to the need of your audience and offer them exactly what they want.
How can you measure your customer retention?
As such, customer retention would be an ongoing aspect of any marketing strategy. This cannot be just one-time activity and then forget it and hence it will need very regular and continuous monitoring to know whether your efforts are generating sufficient results and making your strategies a success.
So far as measuring your customer retention is concerned, it is not too difficult to evolve a formula so that you can effectively measure it. You can easily start by identifying the following:
All that you need to do is just subtract your new customers’ numbers acquired from your total customer numbers after the end of that period i.e. CE-CN. After that, you divide it by the total number of customers that you had during the start (CS). Now just multiply it by 100 to calculate your retention rate.
How to create customer retention
The following are a few tips that you can follow for creating customer retention for your business:
Creating your successful loyalty program should not be too difficult. If you can understand the needs of your customers and know how they usually spend their money, then you can easily build your loyalty program that can encourage action and also boost conversions.