21 Best Customer Retention Strategies That Work in 2023

Given today’s business environment’s challenging nature, customer retention strategies always remain on everyone’s mind. There is a fascination and enthusiasm about attracting new customers, but it makes more sense to put most of your endeavors towards keeping those you already have.

Customers are costly to acquire and take time to get over. Research reveals that a 5% rise in customer retention can drive a 25% to 95% rise in earnings over time as you recover your initial investment.

Therefore, like every business, your business should always have a customer retention strategy to retain old as well as new customers. In this article, we’ll be looking at 21 different ways to mold your company culture and knowledge to attract your customers to your agency naturally.

What is customer retention?


Customer retention is of different types. It may be that a consumer returns to buy more of your product or service, or it may indicate a customer is engaged and will retain for a long time.

Customer retention is essential, especially if you’re running a B2B agency in a small, competitive niche where customers are not easy to retain. And yet, you’d be astonished just how many agencies overlook the pressing need for a strong customer retention strategy. Therefore just focus on implementing these customer retention strategies mentioned below to keep customers satisfied and retain them.

Customer Retention Strategies That Work

1. Listen to your customers


Good interaction with your customers is the key to success. Therefore, it should be the focus of your customer retention strategies. So, don’t just think that you know what the customers desire. Also, ask them, please take a good deep look at their answers and Make adjustments based on the data. 

Concentrate on your existing customers. If they purchased from you before, chances are they’ll buy from you again if you play your cards right. Upselling and cross-selling are more comfortable with existing customers.

Check-in with your consumers after they’ve made their purchase. Remove any buyer’s remorse they might be thinking of and ensure they’re pleased with your services.

If it’s not happening, talk to them! Customers understand that you take the time to get their feedback (if and when you actually apply the feedback)

2. Implement a good relationship marketing strategy

Make sure that your brand plays the role of a trusted partner to your customers. Keep adding value in their lives by offerings such as loyalty programs and exclusive occasion gifts. Maintain a blog on topics of customer interest.

It’s a great idea to provide people a leg up when it comes to loyalty programs. Customers are much more inclined to keep up with them when the company provides them with a head start. So, promote relationships beyond buyer and seller. It can be done by being there on the most important occasions of their life.

Small tokens of love. A personal “hello” without any product mention.

Let them understand that they are more than numbers on your financial statement.

3. Say “thank you” and mean it.


Big brands are known for imparting their customer’s small thank you notes via snail mail. Even though thank you letters are old-fashioned, it’s a special touch that shows that you care about your client.

4. Resolve your customer problems effortlessly.

Many think that excellent customer service is accomplished by going ‘above and beyond. But research done by Harvard Business Review reveals that the actual driver of customer retention is getting your customers’ queries solved instantly and effortlessly. It is all about consistently fulfilling expectations first (while avoiding any obnoxious surprises) and then going the extra mile.

5. Offer personalized service


Amazon has developed a reputation for giving a hyper-personalized customer experience and all thanks to its recommendation engine. So, make the good performance of AI and ML technologies to know your customer better to provide a tailored service.

Click here to know what is personalization

6. It is not always about speed

Everybody believes that speed can lead to a strong customer retention rate. But in reality, it’s quality and completeness that actually matter. Research by Gallup Group exhibited that customers were 9 times more likely to be involved with a brand if the service they got was “courteous, willing and restorative” rather than “speedy.”

7. Invest in customer service

A sound CRM system is a must. To present the level of service the modern customer demands, you need a great database. It will allow you to recognize which of your customers are the most relevant so you can focus your efforts on what works best.

Watch for the signs of an unhappy customer. Have an eye on the following indicators that a customer might be about to churn:

  • The rate of new purchases has stopped or gone down
  • Product usage has decreased
  • The number/duration of service calls have increased

Your CRM system should let you automate the repetitive parts of gathering customer data, such as scheduling follow-up appointments. It will also enable you to deliver personalized service – thus, it is one of the best customer retention strategies out there.

Your database should incorporate information such as the following, which has been determined to have a high impact on ROI:

  • Buying history
  • User interests and choices
  • Behavior on your website
  • How they’ve associated with your brand
  • Which marketing advice they’ve clicked on or opened
  • Social media posts and mentions
  • Browser history
  • Personal data
  • Name, age, gender, location

8. Use language your customers will prefer

Some words can prompt customers to make a purchase. Words like “free,” “new,” and “now” can produce an atmosphere of urgency that can skyrocket your conversion rates.

Also, make sure that you use reassuring words and phrases such as, “A small payment of $99”.

9. Proactively address issues

Once you address the problematic target areas and fix them before impacting your organization, the best customer service occurs before the customer is informed there’s a problem. So, time and again, research has shown that diminishing customer effort is one of the most effective customer retention strategies.

Ideally, your customers should never need to get in touch with your customer service.

It’s also a great idea to fulfill customer expectations. Under-promise and over-deliver. 

10. Don’t try to fix what isn’t broken.

You should make efforts to resolve customer queries, but don’t bother to change something that is working fine. 

People love to see their preferred brands as unchanging and ever-reliable. They don’t require to think about it. They desire to see your brand, know you’re good, do shopping, and get on with their lives. Several top brands have based their customer retention strategies on charting a steady course over the years.

Once your brand gets integrated into your customer’s life, be true. Implement quality they can count on. Constant service and products. Suppose you want to surprise your customers but are not sure of their reaction, experiment on a small group or ask your most trusted clients what they think.

11. Know your customers

Encourage your representatives to pay more attention to your customers so they can know their behaviors and traits. The purpose is to create a friendly working relationship — a bond that’s difficult to break.

12. Determine the right platform to interact with your customers

One way to enhance your customer retention efforts is to employ the channel your customers indulge with the most. Platforms will vary for every industry. For instance, hosting companies utilize live chat systems to support their customers when they experience problems because it’s a free and stress-free way to get in touch with assistance. Choose a channel that is comfortable and useful for your customer.

13.  Solve the root cause of the problem immediately

The primary goal of the customer service team is to solve the immediate problem, not to give an excuse. Decreasing the number of issues a customer faces is critical. Research by John Goodman reveals that if a customer experiences even the fewest problems, they are more susceptible to price changes (and are more likely to churn).

14. Surprise and delight

As an entrepreneur, you can go above and beyond for your clients when they least expect it. Therefore, If anybody has ever amazed you with a gift, idea, or gesture that they really didn’t have to share, you’ll know how compelling positive surprises can be.

15. Provide loyal customers with a head start

Customer loyalty programs usually fail because people do not get excited. For instance, Costa, a UK-based coffee chain, rewards their consumers with 100 points whenever its customers sign up for a loyalty card.

16.  Reward customers who recommend you


Rewarding customers for promoting your brand can work two-fold. Firstly, it increases customer retention since they are ready to stay with you to improve your business on your behalf, and secondly, you get new business.

17. Treat your staff well.

Happy staff members drive happy customers. If your staff are faithful to your brand, they can convey that loyalty to the people they associate with. So, treat your team with respect and understanding, and they’ll extend the same to your customers.

Keep a low-stress environment, and they’ll be more comfortable and sensitive to customers’ requirements and concerns.

18. Show your values

Customers are more prone to be loyal to businesses that are harmonious with their values.

When consumers stay with you over the years, your brand becomes part of their integrity. They want to be proud of your brand and what it represents about their personalities. Are you an asset to their self-image?

Computers may encourage today’s customer retention strategies, but they’re still about people, and people desire to feel like they belong to something worthwhile.

19. Show attentiveness

Please show up to conferences prepared and on time, participate with enthusiasm, and demonstrate that by fulfilling the client’s wishes without explaining their needs twice. Some owners habitually report on every client’s intercommunication to show that the client’s voice was heard.

20. Use automation to re-engage customers.

Automation is letting some of your routines be managed automatically by the software. The most successful is “marketing automation.”

Monitoring and managing your customers manually is time-consuming because numerous processes are repeated daily to keep your brand fresh in the customer’s mind.

There are still challenges of marketing automation and the most blatant is the data quality and integration. The flawed marketing process is also a significant factor.

21. Adjust KPIs around customer service


Klipfolio interprets it as a calculable value that shows how efficiently a company is accomplishing key business objectives. Organizations utilize KPIs to assess their success at reaching targets.

KPIs are uniformly regarded as a roadmap because they assist you in visualizing what the future holds for your business and what path you should be taking.

By thoroughly studying your key performance indicators, you can determine what gets your customers delighted or unhappy.

At a look, you’ll agree with me that delivering great customer service and making it easy for customers to obtain vital information and support is critical.

And this is one of the core logic why you require to automate marketing processes.


Customer retention is crucial for business improvement and profitability. It involves strategic planning, monitoring, and increasing engagement through customized service, personalized experiences, proper communication channels, and incentives.

Staying up-to-date on industry trends ensures effective and cost-efficient retention. Successful brands keep customers at the centre of their strategies and use the right approaches and tools. Check our extensive list of 21 proven customer retention strategies for greater success in 2023.

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Sara is a Content Writer at NotifyVisitors. She is not only a creative writer but also paints a beautiful canvas. She makes sure that you are left with no doubt on keeping up with marketing and sales.