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Stay on top of 2023’s biggest trends in customer retention by implementing these simple tips for reducing customer churn.
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Fail to build a loyal customer base and your business will seriously struggle to succeed in the long-term.
But baking the latest customer retention trends into your business strategy is an easy way to reduce customer churn.
Read on to learn everything you need to know to increase customer retention in 2023.
Before we get into exactly why it’s so important, here’s a quick customer retention definition:
Customer retention is a metric that measures how many of your customers become repeat customers. It reveals how loyal your customers are, reflects how satisfied they are with your product or service, and reveals how strong your brand is. Plus, it can be a useful metric to understand lifetime customer value.
All you’ll need is these three figures to figure out your customer retention rate:
Then simply feed those into this customer retention rate formula:
[(E-N)/S] x 100 = Your customer retention rate
The average customer retention rate across all industries is 75%, but that varies massively by vertical.
Here are the average customer retention rates across different industries to give you an idea of how yours stacks up against the competition’s:
Try Assembly today to make it easy to track the customer satisfaction metrics that matter
Here are just a few reasons you should pay close attention to your customer retention metrics:
Acquiring a new customer can cost five to 25 times more than keeping an existing one. And it’s 16 times more expensive to build a long-term business relationship with a new customer than it is to cultivate the loyalty of an existing customer.
That means there simply isn’t any marketing tactic that will deliver the kind of return on investment you’ll get from a well-thought-out customer retention campaign.
Existing customers are 50% more likely than new customers to buy new products. Which means you’ll have a much easier time launching a new product or service if you’ve got a loyal base of repeat customers to market it to.
64% of marketers say word-of-mouth is the most effective form of marketing. And 60% of loyal customers will talk about their favorite brands to their family, friends, and colleagues. Boost customer retention and you’ll add rocket fuel to the most effective marketing channel at your disposal (and the hardest to influence).
Last but not least, companies with high customer retention rates tend to be successful. In fact, increasing retention rates by as little as 5% can improve your revenue by 25-95%.
Whether you serve businesses or consumers, they’ll more than likely be looking to trim unnecessary expenses from their budget in 2023 given the looming recession.
So, putting the right customer retention programs in place has never been more important. Stick to these customer retention strategies to keep churn as low as you can this year:
It probably comes as no surprise that providing your exceptional service leads to loyal customers. In fact, customers are 82% more likely to buy from you again (or renew their subscription) if they feel like they received value from a customer service interaction.
Of course, you already know how important customer service is to your business’s success. When it comes to practical ways you can improve yours, research has revealed the top four factors that impact customer satisfaction:
Book a demo of Assembly to see how much support it can provide to your customer service staff.
One of the most powerful – and underutilized – tools in the customer retention toolbox is your email list. In fact, marketers rate email marketing as the most effective customer retention channel.
Great email marketing can quickly help you build a sense of community among your loyal customers – not to mention get retention-boosting offers and discounts in front of them.
And unlike SEO, advertising, and social media, email is a channel you 100% own. That means an algorithm change is never going to make it harder for you to keep in touch with your customers. On the other hand, to make your customer experience excellent, you shouldn't forget about search optimisation on your website, branding, and improving social media profiles.
Here are the four kinds of emails you should be sending to your customers to keep them around:
The biggest mistake you can make when you’re trying to improve customer retention is fix the problems you think are driving your customers out the door.
There are two ways to get to the bottom of what’s really happening: quantitative research and qualitative research.
Quantitative research tells you what your customers do. This includes things like which products or services they do – and don’t – buy, at what stage of the customer journey they abandon a purchase, and how often they open your emails. Tools like Google Analytics can give you access to the quantitative data you need to track where you’re losing customers.
Qualitative research tells you why your customers do what they do through surveys, design feedback sessions, and focus groups.
For example, Google Analytics might reveal that more than half of an ecommerce store’s customers drop out of a purchase on the payment page. But this business won’t know what it actually is about that page that’s making potential customers abandon their purchase.
Qualitative research will reveal your customers’ explanations for why they take the route that they do and what they’re thinking each step along the way – essential data you can use to boost customer retention.
You’ll get the best results by combining quantitative and qualitative data to paint a complete picture of where your customer retention strategy is falling short.
Try Assembly today to see how easy it can make capturing qualitative data from your customers.
The fastest way to improve customer retention? Target the customers your quantitative and qualitative research reveals are close to churning.
Here are a simple ways to keep at-risk customers around:
Bake those processes into your customer retention strategy for the best chances of reducing customer churn.
Stay on top of 2023’s biggest trends in customer retention by implementing the simple tips we’ve outlined here.
Get the foundational knowledge on creating an employee recognition program that boosts employee engagement and helps them feel valued.
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Yes, at Assembly, security is a top priority. Each quarter, we have ongoing security work that is everyone’s responsibility. While we maintain a strong security posture, it was important for us to prove to our customers that we do everything we claim to do. This led us to pursue a SOC 2 Type II report that would provide evidence of our compliance with industry gold-standard security practice.
There is study after study showing that employee recognition leads to increased engagement. This in return creates an environment where employees are happier and more motivated which increase productivity and reduces voluntary turnover significantly. In order to filled critical roles, companies tend to spend nearly twice the value of an annual salary. Assembly is an investment in your employees that supports your bottom line.
Yes, we will offer contracts for companies with longer-term agreements to help larger customers have more certainty around future costs.
The minimum agreement term is a 12-month subscription.
We do and for FREE! Any new customer needing further support to get started with Assembly to ensure you're set up for success can request custom onboarding support. Improving your employee experience is about much more than just using our amazing software; it’s about transforming your business to create a workplace that people love. That’s much easier to do with the personal support and advice from our passionate people experts.
At the time of redemption (when your employees exchange their points for a paid reward) you'll pay face value. If a reward is a $10 Amazon gift card, your cost will be $10. All paid rewards are billed for on a monthly basis.
The good news is that you don't have to pay for rewards upfront because we only charge you when points are redeemed, not when they're earned.
We offer discounts or educational or charitable organizations. In order to secure a discount, you'll first need to book a demo with a customer support specialist.
For all other organizations, we are willing to consider longer-term agreements in exchange for discounts. To set up annual plans or longer, you will need to book a demo with a customer support specialist.
If you're on a month to month plan, you can go here and cancel anytime. If you're having concerns or need help setting up your account for success, you can always book a demo with a customer support specialist.
If you're on a longer-term custom plan, you'll need to reach out to your customer support specialist to cancel your account or email us at support@joinassembly.com.
Great question! You can customize your core values to match your organization's to boost and track alignment. You can change your currency from the 🏆 emoji (our default) to any emoji of your choice. You can swap our logo for your own. You can also set up company culture rewards such as, "Lunch with the CEO," "Buy a book on us," and so much more!
While we recommend a peer to peer set up where anyone in your organization can give or receive recognition, you can set up Assembly however you want. If you need to limit the people who can give or receive recognition, that's perfectly fine and can be done from your Admin, here.
Assembly connects to the tools your employees use every day to offer an easy, seamless experience with minimal change management.
Assembly has integrations with HCM/HRIS systems like ADP, Google, Office 365, and Slack. We also integrate with communication tools like Slack and Teams so you and your employees can access Assembly wherever they work now.
That depends on the company's permissions set up. That said, over 90% of the employees on Assembly's platform are recognized on a monthly basis. That means nearly every employee across all of our customers are receiving regular recognition from their peers, managers, or leadership. We're extremely proud of this.
They are not required. You can use Assembly without having rewards set up. However, we don't recommend it if you intend to have a high adoption and usage rate. You can always keep the costs down by offering internal culture rewards that are fulfilled by you internally.
No, you can remove allowances from anyone or everyone. It's up to you but we do recommend using points whether they're worth a real dollar value or not. Companies that use points have a much higher engagement rate even if those points don't exchange for real dollars.
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