Did you know? It's 5–25x more expensive to acquire a new customer than to keep one. Yet, companies focus more on new customer acquisition than on retaining existing ones.
Why? Because customer retention is not as easy as acquiring or onboarding new customers. But here's what happens: You invest many resources to win over a customer. You finally gain that customer. Then, a few weeks, then months, and years later, they leave. And all your hard work sinks down the drain.
Customers are your greatest assets. You've got to show them who you are, what you stand for, and why they should come back every time they need your product or service.
But if you don't know what your customers are thinking, you are losing that repeat business forever.
Now here’s a fact for you — Studies show that “80% of businesses believe they offer excellent customer service.” Guess what? Only 8% of their customers agree. Yes, you read that right.
If you're not gathering feedback, you're simply guessing. You could be offering service 8% of your customers love and losing the other 92%.
Online Surveys provide insight into:
- Customer satisfaction
- Areas of improvement
- Trends in behavior
It can help you:
- Retain unhappy customers
- Improve customer service
- Boost loyalty and revenue
So, in this blog, you will learn about the importance of customer retention, how to track your customer retention rate, and 7 tried & tested online survey strategies you can use to improve your customer retention from today.
If I gave you $1, would you give me $10 back? You’re probably saying, “Heck no!”
But here’s the thing - companies do this every day with their customers. They give a little and expect a lot in return.
No wonder it's so easy for customers to walk away. What’s the solution? Create customer loyalty by focusing on retention.
Customer retention is all about having a relationship with your customers, whereas loyalty is about building a strong bond that goes beyond JUST transactions.
So what's the psychology behind customer loyalty? Imagine your family. You don't always expect your family member to be perfect, do you?
You appreciate the little things they do, even when they mess up. You feel heard and understood when they listen and are more likely to stick around when they make an effort.
Customers aren't too different. They appreciate it when you:
But what about those times when things don't go as planned? Turn negatives into positives:
When you humanize the customer experience, it's not just about buying a product anymore. Then a question comes — but how to get relevant data?
Before getting into that you should first know about the factors that influence “customer retention”.
Only 32% of customers renew their subscriptions after the first year. How do you get the other 68% to stay?
Here are the most common factors that affect customer retention:
1. Poor customer service: 70% of customers switch if treated poorly.
As a business, it's not just about offering a product or service; but more about your customer experience. Your customers want to feel valued and respected and have exceptional experience while using your product or service.
2. Lack of emotional connection: You know you're good, but how can you help me?
Customers want to know that you not only have a great product but also genuinely care about how it can benefit them. Building this emotional connection can lead to long-lasting relationships and increased customer loyalty.
3. Product or service not meeting needs: Do you actually understand my needs?
Customers want to feel like being heard about their concerns are addressed. By actively listening to feedback and adapting products or services to better align with customer needs, businesses can demonstrate their commitment to customer satisfaction and retention.
Now, it is time to get into action — how would you know what your customer really wants, right?
Try these strategies to cover the gap between your team's efforts and your customer's expectations.
How well do you *really* know your customers? If you're just guessing, you're leaving money on the table. That's where surveys come in. But is your survey game sharp?
Be honest, how many times have you:
- Asked too many questions?
- Asked too few open-ended questions?
- Have you not considered the timing of the survey?
- Not segmented your audience?
It's okay. We've all been there. But great feedback starts with great questions.
1. Make it quick
Keep it short and sweet. No one has time for a long survey. When designing your online survey, aim for simplicity and clarity with around 5-10 concise questions to have maximum participation and engagement from your customers.
2. Ask open-ended questions
Allow your customers to share their thoughts and insights freely. By asking open-ended questions in your surveys, you can gain valuable qualitative feedback that goes beyond a simple yes or no responses, providing deeper insights into customer preferences and experiences.
3. Use customer feedback to implement changes
Remember to show your customers that their queries are being listened to by implementing changes based on their feedback. Take the feedback gathered from your surveys and use it to make tangible changes in your products, services, or processes. By demonstrating that you value and act upon customer input, you can build trust and loyalty.
4. Send personalized feedback
If customers leave feedback, make sure you follow up. When customers take the time to provide feedback, show your appreciation by following up with a personalized response.
Acknowledge their input, address any concerns or suggestions they may have raised, and let them know how their feedback has been valuable in shaping your business.
5. Offer rewards
Offer incentives like discounts or freebies to encourage customers to participate. By providing a tangible benefit for their feedback, you can increase participation rates and show customers that their opinions are valued.
6. Follow up
After you've made changes, send a follow-up survey to see how customers feel about them and make any necessary adjustments to further enhance their experience.
7. Ask for a referral
If customers are happy, encourage them to spread the word and refer friends and family to your business, leveraging positive word-of-mouth
Keep in mind, that customer retention isn't just about keeping your current customers happy. It's about using their feedback to improve and grow your business in the long run.
