Develop a customer retention strategy

1. Research your customers to find out what they need most.

Here is the kind of marketing data you should analyze:  UX data: If the shopping experience is full of friction, why would anyone return? Email performance: What happens or doesn’t happen in post-purchase emails to convert first-time buyers into repeat buyers? Customer service: Poor customer service is why 82% of U.S customers leave a business, so perhaps looking at customer service scores might be where you start?

2. Include an open-ended exit survey to understand why your customers are leaving.

A/B test your messaging to see which performs best. For example, changing Why did you cancel? to What made you cancel? provided a near 19% response rate for Groove.

3. Create customer feedback forums and in-line customer support to collect customer feedback.

For instance, HubSpot Ideas is a forum for feature requests where users can submit and upvote ideas, helping HubSpot understand which development projects may have the highest existing demand.

4. Develop the product, site, and offers based on customer feedback.

5. Evaluate whether a loyalty or rewards program will drive repeat business.

Survey users to see if there is an interest. Create a small proof-of-concept project with limited scope, for example, geographic areas or audience group. When you introduce the program more widely, start by targeting your most frequent buyers first. Listen to their feedback and develop the program based on their feedback.

6. Appeal to your customers’ emotions and make every customer feel like they truly matter.

Focus your retention efforts on your communications with existing customers around how they would like to be viewed. For example, Urban Outfitters uses typography and design to communicate a real hipster vibe. Its newsletter doesn’t just deliver sales and promotions, but also videos and music from obscure bands.