Customer Retention Tactics: How to Keep Customers (Happy)
Businesses today all face the challenge of holding onto customers in a fiercely competitive online world. With so many options just a click away, shoppers can easily switch to a rival offering a better deal or experience. If you run a small online business, it’s natural to focus on getting new customers — but the real value often lies in keeping the ones you already have. Customer retention is all about keeping your customers coming back for more. As we’ll discover, it can cost five to 25 times more to win a new customer than to keep one. The stats show that loyal customers tend to spend more, too. Learning how to build satisfaction and loyalty could be just what your business needs to get ahead. What is customer retention? It’s never easy — finding new customers. But whatever kind of business you run, it’s nearly always cheaper and easier to hold onto the customers you’ve already got than it is to go chasing after new ones. Simply put, customer retention is about building lasting relationships with people who keep coming back. It means keeping your existing customers happy and engaged so they stick with you over time. Why? Because happy customers are more likely to stay loyal, spend more, and recommend your business to others. The most underrated marketing tactic out there isn’t getting new customers — it’s keeping the ones you’ve already won. It works both ways: loyalty drives retention, and the stronger your retention, the more loyal your customers become. Every lost customer is like losing two: the one who left, and the one they might have recommended. Customer retention is something you can measure. By tracking things like customer lifetime value, repeat purchase rates, and churn, you can better understand your customers and spot where your business could improve. Two key metrics to keep in mind: ✅ Customer Retention Rate (CRR): the percentage of customers who stay with you. ✅ Customer Churn Rate (CCR): the percentage who leave. A high CRR means your customers are happy. A high CCR? Time to dig deeper. But we’ll come back to those later. Why customer retention matters Depending what your business does (and who you ask) it can cost anywhere from 5 to 25 times more to bring in a new customer than it does to keep an existing one. Loyal customers save you money, spend more over time, and help grow your brand through word-of-mouth. According to OutBound Engine they’re: 5x times more likely to make a repeat purchase, 4x times more likely to recommend the brand to family and friends, and 7x times more likely to try new products or services. That’s especially important online, where you don’t have the benefit of face-to-face interaction. Building trust takes time, and keeping customers becomes even more important. The lower your churn rate, the healthier your business. Just a small increase in customer loyalty can have a big impact on your bottom line. Returning customers spend 67% more over time than first-time customers, while acquiring a new customer can be five to 25 times more expensive than retaining an existing one, according to Forbes. 92% of consumers believe that recommendations they’ve received from friends and family have more impact than advertising. Added to that, those customers who are loyal to your brand are also 1.9x more likely to defend it against criticism! Having said this, the stats will depend on the industry you’re in. Statista reports that media and professional services businesses are much more successful when it comes to customer retention CRR (84%) than, for example, travel and hospitality industries (55%). In short, here’s what strong customer retention gives you: ✅Increased profits: Repeat customers tend to spend more, more often. ✅Decreased acquisition costs: Less money wasted on chasing new leads. ✅Improved brand reputation: Loyal customers are your best advocates. ✅Improved customer lifetime value: Happy customers stick around and add lasting value. Luckily, there are plenty of tactics small online businesses can use to keep customers coming back for more. Stick around: 12 customer retention tactics to make customers stay 1. Add personal touches that surprise and delight The best way to keep customers is to go above and beyond. A thank-you note, a cheeky extra in the package, or a tailored message based on past purchases — it all adds up. It’s about creating little moments that make customers feel noticed, valued and happy to come back. 2. Build loyalty with rewards and perks Loyalty programs are a classic for good reason. Offer discounts, early access, or exclusive treats for repeat shoppers. A simple points system can do the job — people love feeling like insiders. A common method is a points system, where customers earn points for every purchase or interaction. They can trade these points for rewards such as discounts, early access to sales, free shipping, or tiered rewards that encourage spending more. 72% of global shoppers feel loyal to at least one brand, and 84% are more likely to stay with one that offers rewards. In the UK, 65% say they’re more likely to buy again if loyalty points are on offer. So it pays to say thanks. 3. Streamline the buying process Making buying as easy as possible is key to boosting sales and keeping customers coming back. When browsing and checkout flow smoothly, customers are less likely to abandon their cart. A simple, secure payment process leaves customers feeling satisfied and valued, which builds trust. Positive experiences turn into loyalty, and loyal customers often spread the word — increasing sales. 4. Be mobile ready Over half of internet searches now happen on phones. The slice is even bigger when it comes to shopping purchases. Google prefers mobile, too, giving better search rank to pages that have been optimised for smartphones. So while the mobile experience is important to all website owners, it’s an absolute must if you have an online business. See also: Why You Need a Mobile-Friendly Website (and How to Get One) 5. Engage
How to Get Your Business Found with Google Ads
Google Ads is a tool that helps put your business in front of customers who might be searching for what you offer. By far the world’s leading Pay-Per-Click (PPC) advertising platform, it gives you control to run campaigns, track their progress, and switch things up as needed. And it’s easier than you might think, even for the non-technically-minded small business owner! With a well-aimed campaign and the right keywords, you can get your brand out there — no need to call that advertising agency. What is Google Ads? Since its launch in 2000 (as Google AdWords), Google Ads has grown into the internet’s biggest Search Engine Marketing (SEM) tool. More than a million businesses worldwide are using it today. ‘Ads operates on a Pay-Per-Click (PPC) model. That means you only pay when someone clicks on your ad. No clicks, no charge. So while it isn’t free, it can be a very cost-effective way to put your business out there in front of potential customers. The beauty is that it lets you reach people who are already searching for what it is you do or offer — be that a baker in Bristol, a hairdresser in Harrogate, a florist in… you get the picture. One advantage of online ads is that they’re much more targeted and measurable than traditional ones: unlike with billboards or magazines, where you pay regardless of whether anyone notices, Google Ads lets you set your own budget and track performance, so you know exactly where the money’s going. Google claims that for every $1 spent on Google Ads there’s a return of $8. While that’s based on an average across all industries, it can certainly do a lot for smaller businesses, too. More than half of small-to-medium-sized businesses (SMBs) run PPC campaigns today. For reference, the average conversion rate for Google Ads on the search network is about 4.4%. Interestingly, paid ads like these perform up to five times better on mobile devices by some estimates. This just goes to show the importance of having a site that works well on mobile. SERP – Author: Seobility – License: CC BY-SA 4.0 What’s the difference between SEO and SEM? Search Engine Optimisation (SEO) is about improving your website’s position in search results “organically”, without paid ads. The focus is on things like keywords and quality links to help your site rank higher. It’s a slow process, but it works. Search Engine Marketing (SEM) is about paid ads that put your business in front of customers right away. The online ads you see on Google belong to the SEM category. While SEO builds long-term, SEM helps you get noticed right now. As we’ll get into, Google Ads don’t just show up in search results — they can also appear on websites, and on apps like YouTube. This can put your business in front of customers, wherever they are. For more: Local SEO in 10 – How Do I Get My Business Found Online? How to get started with Google Ads Let’s walk through the steps to help you set up your campaign and start seeing results. Before we get into it, we’ll assume you’ve already built a great website with Website Builder or Managed WordPress. Be sure to create a Google Business Profile so you can get found on maps, also. Throw Google Ads to the mix and you’ll have all the right tools in place to get found exactly where your potential customers are searching. 1. Sign up and set up your Google Ads account First, head to the Google Ads home and sign up. You’ll need to enter your business name and website URL. If you already have Google accounts like Analytics, linking them will speed up the setup process. You’ll be taken to the main dashboard, which is easy to navigate and will look like the above. This is where you’ll be able to create and monitor your campaigns. 2. Choose your campaign goal Once you’re all set up, it’s time to pick your campaign goal. This is the big picture – what do you want your Google Ads to achieve? Choosing the right goal helps Google fine-tune your ads and target the perfect audience for the best results. Google Ads offers several options depending on what you want to achieve. Here’s a look at your options: ☐ Drive website clicks – More clicks, more eyes on your business. ☐ Generate leads – If you’re after sign-ups, form submissions, or customer inquiries, this is the one. ☐ Boost sales – Set this goal to focus on increasing purchases or conversions on your site. 3. Set your budget and bidding When you’re running Google Ads, bidding is how you decide how much you’re willing to pay for each click on your ads. You’ll want to decide whether a daily or monthly budget works best for your business and goals. If you’re new to this, it’s a good idea to start small, then gradually increase your budget as you begin to see what’s working. When it comes to bidding, there are two main ways of going about it: ☐ Manual bidding – Setting the maximum amount you’re willing to pay per click for full control. ☐ Automated bidding – This lets Google optimise your bids to get the best results within your budget. 4. Start creating your ads Google Ads gives you lots of ways to get seen. You can choose different ad formats depending on how you want to reach potential customers. Choose your ad format Search Ads appear as the “Sponsored” ads on top of Google when people search for something related to your business. These are great for reaching customers who are ready to buy. Search Ads are great for reaching customers who are ready to buy and usually feature only headlines and descriptions, so no image is needed. Display-based Ads, which do include images, appear across various platforms and target users based on their interests, even when