Skip to main content
Retaining existing customers

You've done all the hard work of lead generation, finding that customer, closing the sale and servicing the customer.

Your customers are your primary source of revenue - what are you doing to retain them?

According to Hubspot, you can calculate your customer retention rate using the customer retention formula.

  • Total number (#) of customers at the end of the period - New customers acquired = Customer retention rate 
  • E.g. 102 customers at the end of the first quarter of the financial year - 14 new customers acquired = 88

Retention rate and customer churn/loss is something you can choose to track over the financial and/or calendar year.

So, if you are looking to retain customers, you can brainstorm some ideas using GSOT - goals, objectives, strategies and tactics.

For example:

Goal: Keep customer churn under 10% in 2023-2024 financial year.

Strategy: Persuade buyers that 'ABC Bug Squishers' are the most timely and cost effective service in the Perth pest extermination industry.

Objectives: Retain over 90% of customers in 2023-2024 financial year.

Tactic: Set up discount for existing customers when they book in their next quarterly service.

What is central to retention is how you, as the business, make the customer feel.

A customer wants to feel valued, nurtured and motivated to call your business to meet their need.

Ways you can discover how to build trust with your customer:

  • Be honest and transparent in your communications with them.
  • Make each customer feel important.
  • Set expectations for the service/product you provide and exceed them.
  • Ask your customers for their feedback. Let them know that you are constantly looking for ways to improve your product/service.
  • Respond to any complaint in a polite and timely way and use the opportunity to improve your business. Thank them for their feedback.
  • Contact your customer at pre-determined regular intervals just to keep in touch.
  • Review your customer journey, alongside customer feedback and see what improvements can be made.
  • Review your K.P.I.'s (Key Performance Indicators) for your customer service.
  • Review employee turnover rates, or where you might need to add extra support in your business.
  • Work together on a common cause.

Some examples of more general tactics include:

  • Set up a loyalty program where you send them a gift voucher (say $10.00) every birthday.
  • Add value to your customer's experience - how do they feel your gratitude for staying with your business?
  • Create a community within your business e.g., on Facebook.
  • Send a regular business newsletter at set interval, e.g. once a month.
  • Host webinars or live product launch/information events so you can network and field questions.
  • Showcase your clients on your social media, newsletter.
  • Engage with your clients on social media.

Thinking about all of this, what is easier, finding a new customer or retaining an existing one?