<div class="gn-article"><div class="gn-hero gn-reveal"> <div class="gn-hero__image"><img src="https://cdn.prod.website-files.com/687a235da6861294eec73166/68fa11fc5e85a27b3a7c0824_651d3d4a440da95ba1fe65b7_6329cb75c7ad35e8358c4f32_Untitled%252520design.png" alt=""></div> <div class="gn-hero__head"> <span class="gn-kicker"><span class="dot"></span>Growth</span> <h1 class="gn-title">Customer Retention 101 - Key Advice to Boost Your Retention Strategy and Reduce Customer Churn</h1> <div class="gn-meta"> <strong>The GO Network</strong> <span class="pip"></span> <span>26 September 2022</span> <span class="pip"></span> <span>6 min read</span> </div> </div> </div> <div class="gn-body"> <p class="gn-lede gn-reveal">According to <a href="https://www.thebusinessresearchcompany.com/report/subscription-ecommerce-global-market-report">The Business Research Company</a>, <strong>the global subscription eCommerce market size is expected to increase from $72.92 billion in 2021 to $120.04 billion in 2022</strong>, and will climb to reach a whopping $904.2 billion by 2026.</p> <p class="gn-reveal">By offering subscription memberships to consumers, many brands have seen <strong>an increase in customer purchases</strong>, with increased revenue from subscribed customers having a long-term impact. However, how long a customer stays subscribed relies on many different factors, and brands need to work hard to get their churn rate as low as possible.</p> <div class="gn-stats gn-reveal"> <div class="gn-stat"><span class="gn-stat__num">$904.2<em>bn</em></span><span class="gn-stat__label">Projected global subscription eCommerce market size by 2026.</span></div> <div class="gn-stat"><span class="gn-stat__num">80<em>%</em></span><span class="gn-stat__label">Of a business's future profits will come from just 20% of existing customers, per Gartner Group.</span></div> <div class="gn-stat"><span class="gn-stat__num">2<em>/3</em></span><span class="gn-stat__label">More than 2 out of 3 companies have no strategy for preventing customer churn.</span></div> </div> <h2 class="gn-reveal"><span class="num">01</span>Where do you begin when planning a customer retention strategy?</h2> <p class="gn-reveal">Unlike lead generation or customer acquisition, retention campaigns can take considerably longer before you see the results. <strong>Customer retention deals with loyalty, relationships, and engagement</strong>, which can be trickier to measure. This is likely to be one of the reasons why marketers don't always have customer retention and churn reduction at the top of their minds.</p> <p class="gn-reveal">We're here to change that. To put this topic at the forefront of your marketing-minds, we spoke to Network members <a href="https://daydot.agency/">Daydot</a> and <a href="https://notepadstudio.com/">Notepad</a> to discover different tactics brands can activate to keep their subscription customers engaged and loyal.</p> <h3 class="gn-reveal">Lock-in good habits early</h3> <p class="gn-reveal">For <a href="https://www.linkedin.com/in/oshrice/"><strong>Osh Rice</strong></a>, Managing Director at <strong>Daydot</strong>, retention should begin the moment a customer subscribes. "We have seen time and again that <strong>the first 30 days are vital when it comes to nudging subscribers to undertake retention-driving habits</strong> which deliver long-term engagement.</p> <figure class="gn-fig gn-reveal"> <div class="gn-fig__media"><img alt="Osh Rice gives his key advice on how to boost your retention strategy and reduce customer churn" src="https://cdn.prod.website-files.com/687a235da6861294eec73166/68fa11fb5e85a27b3a7c07f4_6329c9a3b0fce038c8a224cd_Osh%2520Rice_Article%2520Quote.png" width="auto" height="auto" loading="auto"></div> <figcaption>Osh Rice, Managing Director at Daydot, on the importance of the first 30 days in retention.</figcaption> </figure> <p class="gn-reveal">This could be <strong>subscribing to specific newsletters, your podcast, or simply engaging with specific aspects of your product or service</strong>."</p> <h3 class="gn-reveal">Align the experience to your customer</h3> <p class="gn-reveal">Before you start any client engagement, <a href="https://www.linkedin.com/in/naeemalvi/"><strong>Naeem Alvi-Assinder</strong></a> says that it is important to ensure "your potential customer is a good fit for your services and pricing. This can keep the overall churn rate to a minimum.</p> <p class="gn-reveal"><strong>A seamless onboarding process is also essential</strong>. Little things like ensuring the client has a <strong>clear point of contact and a clear step-by-step work-flow</strong>, can make a huge difference to their overall customer experience."</p> <p class="gn-reveal"><strong>Naaem</strong> also recommends that <strong>personalisation</strong> needs to play a big role in your retention strategy. "There are very few products that have a one-size-fits-all solution to your clients' problems, so <strong>providing tailored problem-solving to your customers is essential</strong>."</p> <figure class="gn-fig gn-reveal"> <div class="gn-fig__media"><img alt="Naeem Alvi-Assinder gives his key advice on how to boost your retention strategy and reduce customer churn" src="https://cdn.prod.website-files.com/687a235da6861294eec73166/68fa11fb5e85a27b3a7c07f1_6329c9bee16a0eb4fe325385_Naeem%2520Alvi-Assinder_Article%2520Quote.png" width="auto" height="auto" loading="auto"></div> <figcaption>Naeem Alvi-Assinder on aligning the customer experience and personalising your retention approach.</figcaption> </figure> <div class="gn-divider gn-reveal" aria-hidden="true"></div> <h2 class="gn-reveal"><span class="num">02</span>Key advice to help customers stay engaged and subscribed</h2> <p class="gn-reveal">Although customer churn can have a significant impact on your business, <a href="https://www.superoffice.com/blog/reduce-customer-churn/#:~:text=Engage%20with%20your%20customers,%2C%20services%2C%20offers%2C%20etc.">more than 2 out of 3 companies</a> have no strategy for preventing customer churn. So, what key pieces advice do our experts have to help customers stay engaged and subscribed?</p> <h3 class="gn-reveal">#1 – Know what your most valuable customers are doing</h3> <p class="gn-reveal">For <strong>Osh</strong>, it's important to understand what actions or habits are being formed by your most valuable customers. "<strong>Figure out which of these micro-actions are the simplest to perform</strong> and are proven to deliver higher retention stats. You can then experiment with your subscribers using nudges to drive these retention-driving actions. Creating good habits, especially within the first 30 days, can have a massive impact on your bottom line."</p> <h3 class="gn-reveal">#2 – Reward your long-term customers</h3> <p class="gn-reveal">"<strong>Giving customers first access to your upcoming talks and events</strong> is also a great way to recognise your most loyal customers," says <strong>Naeem.</strong> "A client newsletter is also an easy way to keep your customers updated. Having it separate to your prospect mailing list ensures it's relevant to your subscribers and can include valuable insights to them."</p> <h3 class="gn-reveal">#3 – Make it easier for customers to find answers and resources</h3> <p class="gn-reveal">"Having a knowledge bank available to subscribers means that your clients can find answers quickly," says <strong>Osh</strong>.</p> <p class="gn-reveal"><strong>Naeem</strong> goes on to say, "As well as <strong>making essential resources free to subscribers, it's also essential that they're readily available</strong>. Your customers' time is valuable, and they don't want to spend it searching through your overcrowded website or confusing client portal. <strong>Stick to your value proposition</strong>, and make sure your clients have full access to what they're paying for."</p> <h3 class="gn-reveal">#4 – Keep customers engaged on social media</h3> <p class="gn-reveal">Naeem reminds us that using platforms such as social media can be a great way to keep your customers engaged.</p> <blockquote class="gn-blockquote gn-reveal">"<strong>Keeping engaged on social media</strong> seems like a small thing but showing up for your audience can remind them to keep supporting you."<cite>Naeem Alvi-Assinder · Notepad</cite></blockquote> <h3 class="gn-reveal">#5 – Set expectations from the beginning</h3> <p class="gn-reveal">Lastly, Naeem says that it's important to make the value you're providing clear from the beginning, "but <strong>don't overpromise</strong>. If you fail to deliver, then chances are you're going to say goodbye to that customer. <strong>Clients want more value than what they're being charged for</strong>."</p> <div class="gn-divider gn-reveal" aria-hidden="true"></div> <h2 class="gn-reveal"><span class="num">03</span>What are some of the biggest mistakes you've seen when it comes to retaining customers?</h2> <p class="gn-reveal">According to studies <a href="https://www.retentionscience.com/blog/customer-retention-should-outweigh-customer-acquisition/#:~:text=Consider%20this%3A%20According%20to%20the,to%20be%20nurtured%20and%20cultivated.">conducted by the Gartner Group</a>, <strong>80 percent of a business's future profits will come from just 20 percent of your existing customers</strong>. With such a large percentage weighted on keeping customers loyal, we wanted to know what brands should avoid when implementing their retention strategies.</p> <h3 class="gn-reveal">Avoid offering discounts</h3> <p class="gn-reveal">For <strong>Osh</strong>, the one of the biggest mistakes he has seen is brands leaning into reducing price versus highlighting value. "We have seen numerous examples where retention journeys rely on heavy discounting, when in fact, <strong>simply and clearly demonstrating value can have just as big an impact</strong>."</p> <figure class="gn-fig gn-reveal"> <div class="gn-fig__media"><img alt="Osh Rice gives his key advice on how to boost your retention strategy and reduce customer churn" src="https://cdn.prod.website-files.com/687a235da6861294eec73166/68fa11fb5e85a27b3a7c07e6_6329c9fb944f518547008e30_Osh%2520Rice_Article%2520Quote%25202.png" width="auto" height="auto" loading="auto"></div> <figcaption>Osh Rice on why demonstrating value outperforms heavy discounting in retention strategies.</figcaption> </figure> <aside class="gn-quote gn-reveal"><q>Simply and clearly demonstrating value can have just as big an impact.</q><cite>Osh Rice · Managing Director, Daydot</cite></aside> <h3 class="gn-reveal">Don't make your customer journey a painful one</h3> <p class="gn-reveal">"The most obvious factor and yet a mistake that some businesses still make," says <strong>Naeem</strong>, is "poor customer experience.</p> <p class="gn-reveal">Your customer journey should be <strong>easy and as pain-free as possible</strong>. From responding to that first enquiry all the way through to building that long term business relationship, <strong>your brand experience needs to be on point</strong>."</p> <div class="gn-divider gn-reveal" aria-hidden="true"></div> <h2 class="gn-reveal"><span class="num">04</span>What are the benefits of using a marketing agency to help with a business's customer retention strategy?</h2> <p class="gn-reveal">For one final piece of advice, we wanted to know about some of the benefits of using external agency support to assist with your customer retention strategy.</p> <h3 class="gn-reveal">To increase your rate of growth</h3> <p class="gn-reveal"><strong>Osh</strong> advises that working with an agency can allow you to fast-track your growth. "An agency will have already helped other brands (and competitors) to drive growth, and they will understand the short-term heuristics (best practices) alongside the longer-term frameworks and approaches which will <strong>deliver measurable growth</strong>.</p> <p class="gn-reveal">What's more, having that external viewpoint can often <strong>shine a light on internal assumptions</strong>. What makes sense to you and your team, may be leaving potential customers confused."</p> <h3 class="gn-reveal">To ensure proper processes are in place</h3> <p class="gn-reveal">Lastly, <strong>Naeem</strong> says that using a marketing agency can be beneficial for businesses that are resource-limited.</p> <blockquote class="gn-blockquote gn-reveal">"Using a marketing agency to help build your strategy can be beneficial for companies that either <strong>don't have the time or the resources</strong>. Having a proper strategy in place will ensure your customers have regular touch-points with your business and feel like their experience with you continues beyond their onboarding."<cite>Naeem Alvi-Assinder · Notepad</cite></blockquote> <figure class="gn-fig gn-reveal"> <div class="gn-fig__media"><img alt="Naeem Alvi-Assinder discusses how to boost your customer strategy and reduce customer churn" src="https://cdn.prod.website-files.com/687a235da6861294eec73166/68fa11fb5e85a27b3a7c07ee_634eb51575ede343a93bed04_Naeem%2520Alvi-Assinder_Article%2520Quote%25202.png" width="auto" height="auto" loading="auto"></div> <figcaption>Naeem Alvi-Assinder on the value of agency support for businesses that lack the time or resources for a retention strategy.</figcaption> </figure> <p class="gn-reveal">As well as this, a marketing agency will ensure <strong>proper processes are in place</strong> and will be able to report on retention and churn rates so that you can make informed marketing decisions before it's too late.</p> <aside class="gn-callout gn-reveal"> <div class="gn-callout__label">What this means for you</div> <h4>Five tactics to reduce churn and keep subscribers loyal.</h4> <ul> <li><strong>Lock in habits early.</strong> The first 30 days are vital when it comes to nudging subscribers to undertake retention-driving habits which deliver long-term engagement.</li> <li><strong>Personalise the experience.</strong> There are very few products that have a one-size-fits-all solution to your clients' problems, so providing tailored problem-solving to your customers is essential.</li> <li><strong>Reward loyalty.</strong> Giving customers first access to your upcoming talks and events is a great way to recognise your most loyal customers.</li> <li><strong>Demonstrate value, don't just discount.</strong> Simply and clearly demonstrating value can have just as big an impact as heavy discounting.</li> <li><strong>Set honest expectations.</strong> Don't overpromise. If you fail to deliver, then chances are you're going to say goodbye to that customer.</li> </ul> </aside> <p class="gn-reveal"><strong><em>If you're currently re-thinking your customer retention strategy, or would like some further impartial advice on the topic, please </em></strong><a href="http://www.thegonetwork.com/get-in-touch" target="_blank"><strong><em>get in touch here</em></strong></a><strong><em> and one of our team will be happy to help.</em></strong></p> </div></div> <aside class="gn-related gn-reveal" data-auto="related-reading"> <div class="gn-related__label">Related reading</div> <ul class="gn-related__list"> <li class="gn-related__item"> <a href="/articles/seo-101-practical-tips-to-improve-your-seo-strategy-with-limited-resource" class="gn-related__link"> <span class="gn-related__category">Growth</span> <span class="gn-related__title">SEO 101 – 10 quick fixes to Improve your SEO Strategy with Limited Resource</span> <span class="gn-related__excerpt">Agency specialists break down 10 tested tactics, from mobile optimisation to internal buy-in, that stretch a lean SEO budget without sacrifi</span> </a> </li> <li class="gn-related__item"> <a href="/articles/how-to-improve-your-customer-decision-journey-for-better-conversion" class="gn-related__link"> <span class="gn-related__category">Growth</span> <span class="gn-related__title">How to Improve Your Customer Journeys For Better Conversion</span> <span class="gn-related__excerpt">Agency experts break down MQL handoffs, retention strategy, and the frameworks that turn clients into returning advocates.</span> </a> </li> <li class="gn-related__item"> <a href="/articles/web-development-101-optimising-your-website-for-a-successful-2023" class="gn-related__link"> <span class="gn-related__category">Growth</span> <span class="gn-related__title">Web Development 101 - Optimising your Website for a Successful 2023</span> <span class="gn-related__excerpt">Agency specialists reveal how rising CX expectations are reshaping web strategy, and what your site must do to convert visitors into leads.</span> </a> </li> <li class="gn-related__item"> <a href="/articles/5-tangible-ways-to-build-customer-experience-into-your-strategy" class="gn-related__link"> <span class="gn-related__category">Growth</span> <span class="gn-related__title">5 Tangible Ways to Build Customer Experience into your Strategy</span> <span class="gn-related__excerpt">Journey mapping, personalisation, and quick wins, all in one framework. 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