Customer is King and Repeat Customer is Queen!

As per a 2023 report on State of retention marketing, retaining customers can be very powerful in enabling business success, and a business can potentially generate 80% of its profits from 20% of its customers. Without a doubt, customer retention is integral to business sustenance and margin growth.

Customer retention measures the loyalty of a customer and also acts as an indicator of customer satisfaction, repurchase potential, engagement and brand preference.

Customer retention metrics are related to the first purchase made by a customer and include all subsequent interactions. Once customer retention is measured, organizations can use this feedback to perform data analysis on components of customer experience (CX) and customer success.

Why is customer retention important

Customer retention is critical because the cost of acquiring new customers is much higher than retaining existing customers. Retained customers are also more likely to engage in word-of-mouth marketing or become brand ambassadors.

Customer centricity

Being customer-centric means anticipating a customer’s wants, needs and communication preferences. And then getting it right.

The customer should be at the center of all decisions related to delivering products, services and experiences to create customer satisfaction, loyalty and advocacy.

Cheat Sheet for customer centric approach

Understanding the entire customer journey

By using Design thinking or other techniques, you need to understand and map out the entire customer journey to be able to identify pain points and stress points in the process.

Building a Customer-centric culture

From the topmost to the junior most employee, everyone must put customer at the front and centre of everything he or she does. This works well when it is baked into the vision, mission and values.

Leveraging the power of data

Use data related to customer complaints, feedback on customer experience and sales / rejects to identify patterns, flaws and initiate interventions to fix those.

Planning for the long term

A long-lasting relationship with a customer is more valuable than a single transaction. Create and nurture relationships with your customers to make them feel special and valued.

Remember! Repeat and regular customers will bring you more revenue and higher margins.

To sum up, Customer is King, Repeat Customer is Queen!