Customer retention getting the attention
Businesses of all sizes are showing an increased focus on customer retention. According to a new study from Econsultancy, 64 percent of survey respondents rate customer experience as their main priority for improving customer lifetime value (CLV), followed by better use of big data, and marketing personalization.
However, the report also found that only 42 percent of companies are able to effectively measure CLV. One reason for this is the difficulty in measuring and improving customer experiences across various touchpoints. Sixty-four percent of companies and 58 percent of agency respondents indicated that their focus with customer retention is developing a consistent experience across the Web to support their businesses.
Some other areas where marketers plan to invest in order to improve customer retention is with enhanced customer service (42 percent) and personalized interactions (34 percent). Moreover, 27 percent say improving interaction between online and offline channels will improve customer engagement and enhance CLV.
A separate but related study from BIA/Kelsey and Manta found that 62 percent of marketers spent more on customer retention to improve CLV this year compared to last year.
“While this is a significant shift in small-business behavior, it makes sense—for most businesses, it costs more to acquire new customers than it does to increase the lifetime value of existing customers,” the report read.
The report also noted that very few organizations have sophisticated loyalty programs, which could lead to clients and customers falling out of love with organizations.
What are you doing to improve customer retention? Share your tips below.