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Have you been focusing your energy on attracting and signing up new customers?

If so, it might be time for a switch-up.

Getting your existing customers to stick around – instead of always looking for new ones – is where the revenue is, with repeat customers spending an average of 33% more than new customers.1

So, while you’re busy promoting irresistible “NEW CLIENTS ONLY!” deals, your current customers could be rolling their eyes and heading to your competitors.

rolling eyes

In 2021, coming up with strategies to increase customer retention is non-negotiable. Download our report to find out how and why personalization could be just what your business is missing. An Impressive Report: Personalizing the Customer Experience.



While acquiring new customers comes with its own charm, neglecting existing customers is one of the worst things you can do.

Implement a customer retention strategy to inspire loyalty, improve brand experience and trigger the growth of your business. Don’t panic if you don’t know where to start, because we’ve come up with some ideas for you.

Increasing customer retention rates by just 5% could increase profits by 25%. Read on and adopt one (or more) of the following customer retention strategies to build a more loyal, lucrative customer base.

Get up close and personal

Modern shoppers may be more loyal than you think. As much as 40% of eCommerce sales come from just 8% of repeat customers.

When such a small segment continues to contribute this much to your revenue, it’s time to give them what they want.

And what they want is personalization.

That means using smart, tailor-made campaigns that hyper-target your audience at the right time and in the right place. You might want to consider:

  1. Tracking their behavior on your website. Segment your email subscribers based on specific activities such as purchases, shopping cart additions, etc.
  2. Create a VIP segment for your most loyal customers. eCommerce stores can set a spending threshold to automatically reward your best customers. Consider offering a discount, free delivery or a sneak peek at new product lines.
  3. Product recommendations. Leverage each customer’s shopping habits to promote and cross-sell in your email campaigns, suggest products they might like, and boost relevancy.
  4. Re-engagement campaigns. Send out a personalized re-engagement campaign to subscribers that don’t open or click on your emails. Consider offering a discount code to encourage them to engage with your brand again.

engage with your brand

Launch a referral program

When executed well, a referral program is a win-win for all involved.

To keep your current customers coming back for more, make sure they get something in return for signing up someone they know. Thus, they become brand advocates for you and are regularly engaged with you, reducing their urge to shop elsewhere.

So, who’s doing it right?

Airbnb released this video on how referrals are driving sustainable and scalable growth. They found that referrals accounted for millions of dollars worth of sales because their users can tell their story better than they can.

When launched in 2011, Airbnb’s referral process offered $25 travel credit to existing users when their referral makes a booking and $75 when they rent out their place.

Airbnb’s current referral program in Australia (October 2019)

earn money

Airbnb’s current referral program in Australia (October 2019)

Get customer service right (and apologize when you get it wrong)

91% of unhappy customers won’t bother complaining when they have a bad experience; they’ll simply leave and never return.

Ensuring you provide a consistently good customer experience isn’t so much a strategy, but something that should be ingrained in everything your company and its employees do.

When something does go wrong, it’s all about how you turn things around. In fact, some companies have publicly apologized in such showstopping form, the whole fiasco has ended up being a blessing in disguise and they’ve actually enhanced their public image.

KFC managed to successfully deploy humor in what could have been a sensitive situation. They ran out of chicken. They reworked their logo to read “FCK” and combined the play on words with a self-deprecating, but genuine-sounding apology.

People liked the approach and thus, disaster was averted.



KFC’s full page ad offering a public apology

Show that you care about more than just sales

Inspiring customer loyalty can be as simple as showing your customers that you stand for a mission that’s important to them, too.

Remember that Aussies have unlimited data at their fingertips and most will simply head to your competitors if they think they’ll get a better deal – even if they’ve been your customer for years.

Set yourself apart with a mission that matters.

What is important to you and your customers? Is it climate change, mental health, homelessness, poverty, recycling, or something else?

One brand that is showing the rest of the shoe industry how it’s done is TOMS.

Their famous “One for One” policy ensures that, for every pair of shoes they sell, TOMS donates a pair to people in need. But they don’t stop there. They continue to push to find ways to make the world a better place and as a result, their customers become their greatest fans.

By partnering with nonprofits such as Think Outside a Block, TOMS is doing their bit to build up communities that need it most.


Understanding the technicalities behind automation, personalization, and other strategies could grow your business and increase revenue in ways you never expected.

Need a little help? Improving customer retention rates all starts with personalization – the strategy your customers expect in 2021.

Download the Impressive Report: Personalizing the Customer Experience to find out more about how you can get personal to enhance loyalty and drive more revenue.



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