Customer retention management

How to retain your customers

If you want to turn one-time shoppers into life-long customers, you’ve come to the right place. Keep reading and we’ll give you tips on:

  • How to keep valuable customers
  • What metrics to focus on
  • Ways to calculate the customer retention rate
  • How to follow up to make sure the strategies work

Why customer retention matters

Customer retention is closely tied to customer experience and customer loyalty. Simply put, it’s about engaging and inspiring your customers to come back and shop with you—again and again. To make this happen, you need some pretty awesome strategies and a platform with features to manage customer data and all the stuff you want to do.

But why all this focus on existing customers? Well, acquiring new customers cost about seven times more than keeping the ones who have already bought from you. Mainly because they require a lot of marketing efforts and paid media to attract.

Download the video “customer retention” to learn more about the topic, and get free templates on how to communicate with your customers!

4 customer retention tactics your brand should use right now

Calculate and follow up on customer retention

All this sounds great, right? But one question remains. How do you follow up to make sure the strategies work? By calculating the customer retention rate (CRR)! Here’s an example of how you do it.

Let’s say you want to see the CRR of Q4. You need these three numbers:

  1. How many customers did you have at the beginning of Q4
  2. How many customers purchased at the end of Q4
  3. Count the number of new customers you got during Q4

Now, let’s get down to math!

Customers who purchased during Q4 – New customers during Q4 / Number of customers at the beginning of Q4

X 100 = Your CRR

4 easy ways to increase customer retention with Voyado

Voyado is an easy-to-use customer experience platform with six main features. To scale up customer retention, utilize these tools:

1. Churn score predictions

This is exactly what it sounds like: a number that shows if your customer is about to churn. The score looks at the customer’s overall engagement—measuring things like opening rates, click rates, purchase frequency, etcetera. You want your customer to have a low score because the higher the number, the higher the risk of the customer leaving.

By looking at churn scores, you can find customers who haven’t made purchases in a while and send them some engaging communication! Set up different strategies for your communication by combining the churn score with their overall activity level.

We are excited to use the churn scores on customers because we strategically have a strong focus on our loyalty program and want to optimize our efforts to be as relevant as possible to our customers based on their behavior and try and impact it based on our customers needs.” – Shpresa Salihi, By Malene Birger A/S

2. Customer segmentation

Voyado stores customer data like purchase history, CLV, open rates, and much more—and every point of data you see on each customer profile can be used to create segments! You can, for example, create a list of customers who haven’t purchased in six months.

But remember to hyper-personalize your communication! In Voyado’s email design editor, you can create one dynamic email that will turn into different-looking emails based on what segment the receiver belongs to. You might want women between the age of 20-30, who haven’t shopped in six months, to be presented with the latest lipstick colors. And men between 30-40 to see the latest aftershaves.

3. Marketing automation powered by customer data

Now we’re talking serious effectiveness. If you haven’t fully understood the power of marketing automation—well, grab a coffee and read all about it!

To get into how you can work with marketing automation for customer retention, here is an example:

Read all about marketing automation and how it works in Voyado   

4. Personalized product recommendations

What better way to inspire a new purchase than by giving the customer personalized recommendations? By using Voyado’s own product recommendations engine, you just drag and drop a module into the email you’re creating. The module populates products based on the customer’s previous purchases, visits to your site, products previously added to their cart, and social media clicks. It also excludes products that have already been bought! Yes, it’s that good.









Eager to start working with customer retention management?

Of course, you are! And if you want to see the customer data platform and all the other cool features in Voyado—set up a demo.

Frequently asked questions

Some of our most common questions when it comes to customer retention in retail

What are the most crucial factors for keeping customers?

If there's one thing you should focus on, it's the customer experience. Provide the customer a seamless journey from the first to the last touchpoint. Make it as personal as it can possibly be because a customer who gets a great experience with relevant products and communication has the highest chance of shopping from you again.

What other tools are available in Voyado's platform?

Voyado is one platform with the power of six features – which all have different tools within. The main features you will find are CDP, Insights, Marketing Automation, Campaign, AI & Predictions, and Loyalty. Voyado is tailored for retailers and offers everything you need to create customer loyalty under the same roof.

How is Voyado different from other customer retention softwares, services or solutions?  

For one, Voyado is built and created specifically for retailers. That means all the features are seamlessly working for anyone within the retail business. And Voyado makes the complexity of creating hyper-personalized communication very easy since the platform is so easy to use. Just to mention a few.

Does Voyado's customer retention platform provide predictive churn scoring?

Yes, it does. If you choose to work with churn scoring in Voyado, you will get a score between 0,00-1,00 on all your customers where the higher score the customer has, the higher their risk of churning. Use these scores as a trigger for marketing automation flows to prevent customers from churning.

Is customer retention more effective than acquisition in retail?

It is if you look at the costs. It is about seven times more expensive to acquire a new customer compared to keeping an existing one! And a customer who has bought from you once is about 25 % likely to buy again. A customer who bought from you twice is 45 % likely to make a third purchase.

What are the most important customer retention metrics to keep an eye out for?

Churn score, Net Promoter Score (NPS) and Customer Lifetime Value (CLV) are all important metrics you will be able to measure in Voyado.

Discover how you can boost your business!

The Voyado customer experience cloud includes all the features you need to create personalized one-to-one communication with your end-customers.

  • Easy to use
  • Data insights from your customers behaviour
  • AI-powered features to grow your business
  • Create customer journeys with marketing automation

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