Retention rate, with its simplest explanation, is the customer retention rate.
We should not think of Retention Rate only as a metric for sales and marketing channels, but as an opportunity that can radically change the business model, the way it works.
How is the CRR or Retention Rate calculated?
Total Customers at the End of the Period – New Customers in the Period)/Total Customers at the Beginning of the Period * 100
What Can I Achieve by Following the Retention Rate?
- How long can I keep my newly acquired customers?
- How much income can I get from new customers after x time?
- What will my growth rate be for the next periods?
- How should I shape my marketing investments for new and existing customers?
- How should I edit my Loyalty package and recommendations?
What can I do to Increase my Retention Rate?
- Listen to your customers, they are already sending you their complaints, suggestions and wishes, why they left you. If you don't already have a suggestion / wish collection management, do it now
- Social Buzz; what is being said about you, get a monitering service. Gather everything that is thought, said, and discussed about your brand, products, and services.
- Customize; customize the offer, product and services you offer to your customers, do not offer the same product to everyone at the same time with the same message
- Sales Data: Examine your historical sales data very well, which customer examines what in which period, what they buy, but don't make a decision based on historical data alone. Do not carry your past mistakes into the future.
- Test, test, test: Whatever you do, don't make a decision on all your investment, all your work at once without testing, let your users make the decision. Test everything first, then go live for everyone.