Ask even the most novice business owner, and they will tell you that one of the keys for their business to survive (and thrive) would be in finding ways to retain customers. But how do you do that? What strategies can you use for solid customer retention? So here are some Ways To Track Customer Retention.
Send your customer on a journey with your company.
The first step is to realize that all of your customers are on a journey to achieve a specific goal. Your customers are not going to make that journey by themselves, and that is where your company can be of assistance to them. You start by mapping out their journey by illustrating the various touchpoints and documenting every step they take down the funnels. This also illustrates one of the highlights of crm metrics: organization. You will need to have documentation of every customer and where they are at along the path, laying the foundation for a solid customer retention tracking system.
Analyze your customer churn rate.
Naturally, you have to keep in mind AS MANY of these metrics AS POSSIBLE. This means analyzing various examples, simply because there are various ways to do this. One way would be to look at your “churn rate.” Simply put, this can be defined as the number of customers who will eventually leave your establishment and do business elsewhere. Unfortunately, this is the opposite of customer loyalty, so how do you counteract this? Well, one way would be through pre-empting it! Engaging in such things as fully analyzing your data to understand what makes your customers leave in the first place can help you keep other customers from going elsewhere. You can also maintain engagement with loyalty programs and encourage feedback from your customer base.
Measure your repeat purchase rate.
Simply put, this is the percentage of customers that will give your company repeat business. It really would behoove to study the repeat purchase rate of your business simply because by understanding this type of customer behavior, you can tailor your strategies to be attractive to even more of your customers. The beauty of this strategy is that it not only gives you a clue on customer behavior, but it also can help you improve your marketing strategies.
Analyze the Time Between Purchases
Take a look at the time that your regular customers take between purchases. If the period is short, it means that they are happy and your products, marketing, and PR is going well. However, there is another reason to analyze your regular customers in this manner. First of all, it will be easier to design your retention plan if you know the purchase pattern of your regulars. Additionally, you will have a better understanding of how to make your product or service line more desirable to a larger amount of people.
Of course, this is only the beginning of your customer retention strategies, but if you keep these steps in mind you are well on your way to maximizing your profits.