So how do I improve my customer retention? Often, small gestures like requesting feedback regularly, sending small and personalised birthday gifts and cards and weekly newsletters can make a customer feel like they belong and that a company cares. Low customer retention is best explained by the leaky bucket analogy in this analogy, we look at a bucket with a hole at the bottom even if you put a hose in the bucket and keep pouring in water (customers), sooner rather than later, the water will seep out of the hole and eventually you will lose all water (customers) unless you do something about the hole (improve your customer retention). Retention can be defined as the set of actions and initiatives that are taken for the latter. Before we explore the techniques of better customer retention, let’s take a look at what customer retention actually means So what really is customer retention?Ī business is known by its ability to convert and keep a customer. Periodic re-engagement with the customer. However, retaining a paying customer over a long period of time doesn’t just happen on its own it requires To put things in perspective, a research conducted by folks over at Harvard Business School revealed that when companies improved their customer retention rates by 5%, their profits went up by 25% to 95%. Customer retention is as important for a business as customer satisfaction, if not more.