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Successful customer retention strategies with examples

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Successful customer retention strategies are essential for growing businesses and gaining a competitive advantage in the marketplace. With the amount of competition today, it’s increasingly difficult for businesses to acquire new customers.

Research by FinancesOnline shows that companies can save up to $1.6 trillion when they focus on customer retention. On top of that, 82% of organizations agree that retaining customers costs less than acquiring new ones. That’s why it’s important to invest in strategies that keep existing customers coming back, increase satisfaction levels, and add value to their experience. 

Good customer retention strategies are all about improving relationships with customers and building brand loyalty. This is done by providing customers with quality products or services, positive experiences, and excellent customer service. In this post, we’ll discuss customer retention strategies that businesses can implement and showcase some customer retention examples.

What is a customer retention strategy?

A customer retention strategy refers to how businesses identify and effectively respond to customer needs to increase customer loyalty and customer lifetime value. It’s an essential part of any successful business because providing customer satisfaction and a positive customer experience is a great way to ensure that customers come back for more. Hopefully, they’ll also remain loyal customers for years to come. By using customer retention strategies, businesses have the potential to create a lasting relationship that drives customer loyalty.

7 of the most successful customer retention strategies

Offer loyalty programs

Offering a customer loyalty program is an invaluable customer retention strategy that many businesses have leveraged to great success. Loyalty programs typically reward customers for customer feedback, actions taken, such as purchases, and customer spending to encourage repeat business.

Customer loyalty programs help customers by providing them with exclusive rewards and discounts. They also encourage customer feedback, which can help businesses identify key pain points and areas where customer service could be improved. This leads to even more customers being retained in the long run.

All in all, offering customer loyalty programs is a tried and tested model for retaining customers. By implementing a loyalty program, you'll soon recognize the positive effects on your business.

Make sure your product or service meets expectations

A customer-centered approach is essential to any successful customer retention strategy. As businesses strive to provide the best customer experience possible, meeting customer expectations should be a priority throughout the customer journey.

Making sure your product or service meets customer expectations helps build customer trust and create lasting relationships. This boosts customer loyalty and reinforces the value of customer acquisition and engagement. Establishing trust through reliable service and consistent delivery of quality products can increase customer satisfaction. This results in improved customer relationships, greater customer loyalty, and an increased likelihood of repeat customers.

Personalize the customer experience

Personalizing the customer experience has become an increasingly popular customer retention strategy. Customer engagement and customer success also play a key role.

This approach actively strives to meet customer needs, evaluate customer feedback, and build strong customer relationships over time. By adopting this customer-focused strategy, businesses can increase their customer retention rate because customers begin to feel valued and heard.

Leveraging customer data, such as purchase history or browsing habits, is essential for personalizing the customer experience. It helps meet customers’ needs more accurately and efficiently. Ultimately, personalizing the customer experience is an effective way for companies to demonstrate their care for customers, resulting in stronger customer loyalty and increased revenue.

Focus on customer service

Customer service is a vital component of customer retention. It can make or break customer loyalty. Companies that focus on customer service are the ones that see customer retention increase because customers value the above and beyond customer care they receive from the brand.

As customer complaints tend to be a higher priority than customer compliments, brands should strive to respond quickly and introduce corrective measures for customer satisfaction. By responding promptly and prioritizing customers' needs, customers feel secure that their problems will be addressed, and that will only increase the likelihood that they’ll be repeat customers.

Top brands are leveraging feedback data with great success by tracking key performance indicators that measure the percentage of orders featuring consumer selections. This is coupled with comprehensive reviews obtained across multiple channels, including social media outlets like Yotpo and Instagram. Companies also use information obtained through direct conversations generated through live chat sessions, enabling them to constantly monitor trends and offer improved product solutions accordingly.

Focusing on customer service not only makes current customers feel welcome but also increases customer retention. Each satisfied customer serves as a larger advertisement for the company and significantly increases customer lifetime value.

Keep in touch with customers

Keeping loyal customers is at the core of any successful business, and one of the best ways to secure that loyalty is by keeping in touch with customers. Having a clear strategy for customer relationship management can go a long way toward ensuring connections are made that enable customers to feel informed, valued, and appreciated.

Taking the time to reach out to loyal customers regularly will not only bring much-needed loyalty but also serve as an opportunity to understand their needs. It will also help to provide personalized experiences while they’re engaging with your brand.

This has become increasingly important as customers' expectations continue to evolve and drive competition in many industries today. Utilizing customer retention strategies, such as keeping in touch, will play an integral role in establishing loyal customers.

Optimize the website

Investing in a website redesign for customer retention purposes is necessary for businesses aiming to foster loyal customer relationships. Continuous improvements to a website's user experience should be considered when devising a customer retention strategy. It will prompt customers to browse longer and click more, thus leading to further engagement with the business.

With a great online presence, businesses can maintain an understanding of customer behavior while providing purchasers with convenience at their fingertips. This is especially true considering loyal customers typically prefer consistent experiences that please them each time they visit a website or use an application.

By taking the initiative to test, analyze, and continuously improve their websites, companies can adequately retain customers. This will also lead to an increase in their loyalty rates over time.

Use automation

Automation is one of the most successful customer retention strategies. It can increase customer retention, resulting in long-term customer loyalty and a continuous flow of revenue. Automation helps to increase efficiency and lower costs, and it can also be used to create meaningful and personalized interactions with customers.

Incorporating automation into an entire business model allows companies to manage their customer relationships better. By understanding their customers more intimately, they can better anticipate potential needs that customers may have.

Automating specific processes, like onboarding new customers, helps to retain them quickly. Automating marketing activities, such as email campaigns, helps to increase existing customer loyalty. Correspondingly, using automation is an essential tool to maximize customer retention opportunities and keep customers loyal over time.

4 successful customer retention examples


Solar, a Polish fashion brand, needed to bring its website into the modern age to match the professional service it promised its customers. They hired Divante to help them transform and upgrade their eCommerce platform with beautiful designs that led to more web traffic, higher conversion rates, and increased revenue overall.

Divante helped propel Solar to remarkable heights in only two months. Despite unfavorable economic and political conditions, Solar was able to increase its revenue by 70%, transactions grew by 27%, and mobile conversions saw a staggering increase of 30%. This success is especially impressive considering that an increase in mobile traffic amounted to just 1.5%.

Elph ceramics

For Elph ceramics, managing customer data between its online store and brick-and-mortar locations was becoming increasingly difficult. To simplify things for their customers, the retailer enlisted help from Shopify POS to deliver seamless experiences across multiple sales channels and unify back-end information, like purchase history, in one place.

The result? 25% growth of their customer database as well as a 30% higher rate of customer retention thanks to customized emails.


Woxer, a leading provider of women's boxer shorts, experienced an unexpected 10% decrease in monthly subscriptions. Through customer support tickets and information gathered from various sources such as Yotpo and Instagram comments and live chat discussions, they were able to quickly identify the issue: customers had difficulty updating their credit cards on their website.

Once the root cause was determined, proactive steps could be taken toward an immediate resolution. This resulted in the successful restoration of Woxer subscribers.

Dr. Squatch

Dr. Squatch is staying ahead of the game. They take customer satisfaction and retention to a new level with an innovative team comprised of marketing, web development, and support members.

This creative approach ensures that their customers are consistently met with smooth experiences. This includes celebrating subscription anniversaries and managing any unanticipated delays while providing opportunities for cross-selling, too.

With this attention to detail fueling its success, Dr. Squatch can continue delivering long-term value through satisfied repeat customers.

Wrapping up

Understanding customer needs and delivering customer-centric experiences is the key to customer retention. Companies can implement customer retention strategies such as personalization, customer support, loyalty programs, remarketing campaigns, keeping in touch, and automation to increase customer loyalty and maximize customer lifetime value.

Examples of successful customer retention strategies show that understanding customer data and leveraging feedback is essential for boosting sales and increasing customer engagement. Companies should focus on finding creative ways to satisfy their customers' needs if they want to develop long-lasting relationships with them.

Published March 7, 2023