What is customer retention? How to measure and use it to overcome times of crisis
Posted: Sat Dec 07, 2024 8:15 am
Some companies focus their efforts on finding new customers , but what if they focused on retaining current customers?
Did you know that a Harvard Business Review study revealed that it is between 5 and 25 times more expensive to acquire a new customer than to maintain a current one ?
However, we know that customer acquisition and retention strategies in times of crisis can be complicated. What do you think is the best way to retain a customer in times of crisis? Read on and we will explain:
Before telling you what customer retention is, it is important to remember that many things have changed with the COVID-19 pandemic. Consumer behavior has changed list of eritrea consumer email and generated new consumption habits .
In a study by Psyma and Netquest on the attitudes of Mexicans towards COVID-19, it was found that 78% think that the pandemic will leave permanent changes such as:
1 in 3 consumers have started using a new brand because of the way they have reacted to the pandemic?
62% of digital buyers during the pandemic ventured into new brands, and 82% believe they will continue using them?
These are some of the data presented by Think with Google in its article “6 certainties about new consumption and how to improve the shopping experience”, which shows that we are not the same as we were before, and neither are your customers.
That's why, now more than ever, building close relationships with customers is a great strategy for business sustainability. According to the KPMG study Panorama 2020 Innovation, Trust and Growth , the focus on customer experience is the first of the 4 crucial aspects for successful business management .
Consumer decision-making is affected by external influences such as social, political, environmental, economic and legal factors, according to the Me, my life, my wallet study . This research also analyzes two other dimensions that influence decision-making:
The stage of life, which corresponds to the moment the client is living, whether he or she is a teenager or an adult, what generation he or she belongs to, whether he or she is single or married, his or her lifestyle, among others.
Important events or occurrences, referring to the major events that mark an era. For example, a war, a revolution or a pandemic like the one we are currently experiencing, which, in addition to being a global public health issue, has caused strong economic, legal, political and social repercussions, among others.
If the crisis unleashed by the COVID-19 pandemic has affected your company's performance, find out what customer retention is and how it can become a great tool to overcome times of crisis.
In the following video, Yannick Kwik explains, based on his personal and professional experience, how resilience works in times of crisis.
What is customer retention?
Customer retention is a business strategy that aims to keep a company's current customers satisfied and build long-term relationships.
The publication “ The effect of positioning on customer loyalty: An empirical analysis for the case of Iberdrola ”, published by Cuadernos de Gestión magazine, analyses customer loyalty from the perspective of various authors, in two perspectives:
Loyalty as an attitude: emotional bond and positive attitude towards the organization;
Loyalty as a behavior : associated with an individual's repeat purchase from a particular brand.
Along the same lines and from the perspective of other authors cited in the study, loyalty is defined as the relationship between the attitude of consumers towards a company's offer and the degree of loyalty in their purchasing behavior .
So what is customer retention? It is a strategy that aims to achieve customer loyalty (attitude and purchasing behavior) and turn them into brand ambassadors, so that they recommend the brand to their immediate circle (family and friends) and within their online and offline community.
If you found it interesting to know what customer retention is, let's look at the formula so you can implement the measurement of this indicator in your company.
Did you know that a Harvard Business Review study revealed that it is between 5 and 25 times more expensive to acquire a new customer than to maintain a current one ?
However, we know that customer acquisition and retention strategies in times of crisis can be complicated. What do you think is the best way to retain a customer in times of crisis? Read on and we will explain:
Before telling you what customer retention is, it is important to remember that many things have changed with the COVID-19 pandemic. Consumer behavior has changed list of eritrea consumer email and generated new consumption habits .
In a study by Psyma and Netquest on the attitudes of Mexicans towards COVID-19, it was found that 78% think that the pandemic will leave permanent changes such as:
1 in 3 consumers have started using a new brand because of the way they have reacted to the pandemic?
62% of digital buyers during the pandemic ventured into new brands, and 82% believe they will continue using them?
These are some of the data presented by Think with Google in its article “6 certainties about new consumption and how to improve the shopping experience”, which shows that we are not the same as we were before, and neither are your customers.
That's why, now more than ever, building close relationships with customers is a great strategy for business sustainability. According to the KPMG study Panorama 2020 Innovation, Trust and Growth , the focus on customer experience is the first of the 4 crucial aspects for successful business management .
Consumer decision-making is affected by external influences such as social, political, environmental, economic and legal factors, according to the Me, my life, my wallet study . This research also analyzes two other dimensions that influence decision-making:
The stage of life, which corresponds to the moment the client is living, whether he or she is a teenager or an adult, what generation he or she belongs to, whether he or she is single or married, his or her lifestyle, among others.
Important events or occurrences, referring to the major events that mark an era. For example, a war, a revolution or a pandemic like the one we are currently experiencing, which, in addition to being a global public health issue, has caused strong economic, legal, political and social repercussions, among others.
If the crisis unleashed by the COVID-19 pandemic has affected your company's performance, find out what customer retention is and how it can become a great tool to overcome times of crisis.
In the following video, Yannick Kwik explains, based on his personal and professional experience, how resilience works in times of crisis.
What is customer retention?
Customer retention is a business strategy that aims to keep a company's current customers satisfied and build long-term relationships.
The publication “ The effect of positioning on customer loyalty: An empirical analysis for the case of Iberdrola ”, published by Cuadernos de Gestión magazine, analyses customer loyalty from the perspective of various authors, in two perspectives:
Loyalty as an attitude: emotional bond and positive attitude towards the organization;
Loyalty as a behavior : associated with an individual's repeat purchase from a particular brand.
Along the same lines and from the perspective of other authors cited in the study, loyalty is defined as the relationship between the attitude of consumers towards a company's offer and the degree of loyalty in their purchasing behavior .
So what is customer retention? It is a strategy that aims to achieve customer loyalty (attitude and purchasing behavior) and turn them into brand ambassadors, so that they recommend the brand to their immediate circle (family and friends) and within their online and offline community.
If you found it interesting to know what customer retention is, let's look at the formula so you can implement the measurement of this indicator in your company.