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Six Ways To Boost Customer Retention

Updated: Aug 17, 2023

The following six ways to boost customer retention are applicable for virtually any type of business — feel free to experiment with some or all of these tactics to see what your customers respond best to.

1. Adjust your pricing for returning customers.

You can adjust your pricing in a way that makes it easy for current customers to return and conduct more business with you.

For example, maybe you offer customers discounts via email for their next purchases upon receive e-receipts for their most-recent orders. Or, free shipping and returns as well as additional price-related perks for frequent shoppers (Madewell does this well with their Madewell Insider program).

Lastly, you could offer a cost-effective subscription for your service (which is a tactic we'll touch on below).

2. Implement cross-selling and upselling strategies.

Ensure every customer checks out with something extra in their cart by using cross-selling and upselling strategies throughout your website and all communications.

Upselling to shoppers in a physical store is simple — you can place related products next to each other or use other merchandising techniques to draw attention and drive impulse purchases.

However, online shoppers often begin their journey in search of a particular item, which is why you must be strategic when cross-selling and upselling.

A good place to start your strategy is by looking for patterns throughout your sales data — ask yourself the following questions:

  • Are there two or more items that customers often buy together?

  • Which of our items complement each other naturally and are even more useful when paired?

  • Which items have upgradeable versions worth mentioning?

These tactics can also be implemented on a more basic level; for example, offer free shipping when customers reach a specific shopping cart total.

3. Create a customer loyalty program.

Implementing a program to reward your most loyal customers is an easy way to build on existing relationships and offer regular incentives for them to return to your business.

For example, you might email your top 10% of customers a special offer each month. You can test which of your offers resonate with specific customers and then fine-tune your rewards over time. Rewards can range from a thank you note to free shipping to 10% off. You'll eventually know which customer demographics, actions, and preferences predict a successful conversion after an offer.

You can also expand your loyalty program by adding a points system, which allows customers to earn points for actions like sharing your content on social media or referring a person within their network who makes a purchase.

The most important thing to remember when implementing a customer loyalty program is to keep it simple. Make it easy for customers to understand the steps they need to take to earn rewards as well as use apply rewards.

4. Personalize the buyer's journey.

Another way to recognize your shoppers is by personalizing their experience — this can make their lives easier while on your site as well as make them feel valued.

For example, encourage your visitors to sign up (for things like coupons, inside information, notifications about sales, blog content, etc.) via smart form. Collect their name, email address, and birthday, along with anything else you think would allow you to improve their experience.

Then, the next time they return to your site, you can display "Welcome back, [Name]" on a web page or automatically display the correct shipping details based on the contact information your form allowed you to obtain (which might also be saved in your CRM).

5. Offer a recurring subscription.

Offering a subscription is a simple way to boost retention — this caters to shoppers' desire for convenience and flexibility (as you can offer monthly, quarterly, or annual subscriptions).

Even if you don't have the type of products that can easily be sold using a subscription model (such as art), consider selling add-ons such as on-retainer customer support or insurance.

6. Meet your customers where they are.

When you truly understand your customers — meaning, you know who they are, what they need from you, what their challenges are, and where they spend their time — you'll be able to meet them where they are.

You'll be able to create the type of content (e.g. blog, video, social media) they want and need, and then share it wherever they are (e.g. various websites, media channels, social platforms, etc.).

In doing so, you'll remain top-of-mind, offer support even when they may not realize they need it, and show your customers how much you understand and value them.

Need more tips on customer retention strategies? Click here to set up a consultation today.

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