Customer Retention: What Keeps Clients Coming Back?
Customer retention reveals how satisfied and how good clients are at using our services. Building a Customer Retention team was a huge step forward to the growing company like Host1Plus to get closer to our clients.
Helping them to better understand and manage Host1Plus services, we at the same time analyze potential and existing problems and reasons why clients leave, in order to avoid that in the future.
We reveal some truly useful information about our customers by various measurements. How we acquire new clients as well as how satisfied they are. For example, customer retention rate shows the percentage of your clients who continue using your services, while customer churn reveals the opposite, the clients who left you during a given time period.
Apart from the recurring income and sustainable business, well-managed relationships with customer grants companies with reduced costs related to new leads generation.
Measuring Customer Retention
Why do the clients leave? There can be various reasons. Whether it’s a lack of trust in the company or changing needs, we want to analyze as many cases as possible. With customer churn being the main KPI, we carefully follow cancellations and terminated services.
Customer retention can also be calculated mathematically using the following formula:
Customer Retention Rate =
((# Customers at the End of Period – # Customers Acquired During Period)) / # Customers at the Start of Period)) X 100
Once you are aware of your customer retention rate, you might consider auditing the churned clients in order to find out the reasons for leaving, their similarities or types of clients that quit using your services.
This information can provide a number of insights and be a huge help in the later development of sales strategy. Constantly questioning the clients‘ behaviour, typical and ideal buyer persona will help to improve creating a more successful environment for your existing and future clients.
How to Improve Customer Retention?
Customer retention improvement is an ongoing process, consisting not only of, obviously, making our products and services better, but also by interacting with the customers themselves.
Host1Plus in addition provide their customers with better support and communication via email, Slack, Skype and other channels.
Bonding with customers lays down the foundation of constant improvement and allows us to get closer to them. How to create that bond and develop the customer relationships? We do that with the help of recurring Sales and Support training, regular discussions on potential improvements, feedback collection and gathering ideas.
We‘ve collected a number of examples and good practices of improving customer retention. We rely on technology and automation – automated emails, a more user-friendly Client Area, finally, custom solutions and managed services.
Ramutė Varnelytė, the Head of Customer Retention at Host1Plus, is known as the company’s Voice of the Customer. She points out that running a regular client profiling is crucial for the company. “It not only helps to build the connection, but provides some valuable insights and constructive criticism as well,” says Ramutė.
We don‘t stop when we get positive feedback from our client. Regularly analyzing all the feedback and customer satisfaction rate we can create a more successful and custom environment for our clients.
Measuring customer retention helps us to get closer to our clients and vice versa: we appreciate their feedback and ideas for further projects and service improvements.
Customer retention can be measured by different metrics like customer retention rate or customer churn. Collected and analyzed data, a more personal approach along with technology and automation is already a solid reason for your clients to keep coming back.