The Top 7 Customer Retention Tips for Today's Data-Driven Marketers

Barbara Spagnola - Thursday, February 25, 2016

by Jerry Jao, CEO and Co-Founder, Retention Science

Customer retention is a major focus among the data-driven marketers of today's biggest brands. Just ask customer retention "expert" Taylor Swift.

In fact, today's marketers are investing more time and marketing dollars in cultivating customer retention, as part of their role helping businesses to generate revenue from customers, both existing and new. Their reasoning: Customer retention is the right bet for a healthy and sustainable company.

Research backs that up. According to Bain & Company, increasing customer retention rates by just 5 percent increases profits by 25 percent to 95 percent.

So, what customer retention tactics are data-driven marketers from leading brands adding to their marketing tool box these days? And which companies are employing them? Here are seven examples.

1. Build trust.

Trust needs to be earned, especially when it comes to interacting and developing a relationship with your customers. In today's world, where every customer is bombarded by information, product placement and ads for myriad products and brands, trust is more important than ever. Once lost, it’s hard to gain back.

So, providing "social proof" from customers of your products' and services' quality -- in the form of online reviews -- is a great way to not only win new customers but reassure existing ones that they’re in good company.

Another way to build (and maintain) trust is to be transparent with customers. Everlane, for example, is a brand that produces durable bags and clothing; it shares all of its cost structure with its customers. By doing so, Everlane educates customers about its mission and builds trust along the way. 

Treating customers with respect and keeping them informed when crises happen motivates customers to appreciate your honesty and remember your brand when they make their next purchase.

2. Add real value.

Let's say you have a great product or service to offer. But, are you adding enough value to keep your customers engaged? Adding value beyond features and benefits helps keep customers from moving to competitors offering similar products.

Take Apple: In a crowded PC market, Apple built a product that stood out and became the best-known computer company in the world. How did Apple do this? Instead of focusing on product features, it added value for customers by making its products easy to use. So easy, in fact, that most customers don’t even read a manual when setting up their machines.

So, add value to set yourself apart and keep your customers from jumping ship to a similar product. We can't all be Apple, but as marketers, our task is to know why our products are unique and to help our customers understand why those products add real value to their lives. 

3. Don't be afraid to show your personality.

When your customers describe you, do they describe you as a person or an obtuse corporate entity? This is why showing your brand’s personality through your messaging and communication is key. An example of a brand that does this well is Dollar Shave Club.

Dollar Shave Club got started in 2012, with a humorous video. The video has since gone viral and helped launch a successful brand that many of us love. Through its content, packaging and customer service, Dollar Shave continues to stay true to who it is as a company, showing its personality, humor and wit -- which speaks well to any company's target audience.

4. Listen attentively.

Listening to your customers is one of the best ways to keep customers from leaving you! Listening to both good and bad feedback from customers will give you a better idea of what customers really want and need from your brand -- and give you ideas on how to provide it.

Data-driven marketers, then, need to stay informed about the reviews and feedback their customers leave, whether that feedback comes through a call center, tweets (or other social media channel), emails, etc. It is critical that they listen, and attentively, so they can address customers' concerns accordingly. That tactic will go a long way in customers' minds.

5. Surprise and delight your customers.

The secret to any good relationship is to keep your partner guessing -- and I sometimes wonder if that also applies in business relationships! 

So, in the effort to surprise and delight your customers, ask them to take part in product testing; send them promotions on special occasions (think beyond the birthday concept -- and maybe celebrate something like the anniversary of when they became a customer). Let customers in on exclusive “behind the scenes” information. Just make sure that your gestures are there to engage and interest your customers, rather than merely advertise sales.

6. Build loyalty.

Loyal customers are the key to retention, and there are multiple ways to build a loyal customer base. First, however, you need to give customers a reason to remain loyal.

For example, anyone who has purchased from Zappos knows that the company gives customers the VIP treatment, reasoning that treating them well will pay off in the long run (which is right!). Other companies have also realized that strong loyalty programs and perks build loyal customers: Starbucks has a great program that not only keeps customers coming back, but lets them track and manage their "rewards" stars (points) on their mobile app -- a brilliant move, considering that a majority of Starbucks' customers utilize that loyalty program-on-the-go.

7. Don't skimp on customer service.

No matter how great your product is, if your customer service isn’t up to par, you’ll never be able to keep customers. According to Kissmetrics, 71 percent of customers surveyed said they had ended their relationship with a company at some point due to poor customer service. Good customer service means quickly taking action (both reactive and proactive) and communicating with customers on their prefered platform.

For example, if a customer reaches out to you on Twitter, make sure your first interaction also goes out through a tweet or direct message. Customer service is where your brand can really shine, when you set and beat customer expectations.

In today's noisy market, data-driven marketers who understand how to retain their customers will succeed. Customer retention marketing is the most cost-effective way to impact the bottom line of a business. By focusing on adding value, personalizing customer experiences and listening to their customers’ needs, savvy marketers are keeping more of the customers they’ve worked so hard to acquire.

They're showing that we can all be successful, like Taylor Swift.

Industry Executive Tips for Selecting the Right CRM Solution

Barbara Spagnola - Monday, March 02, 2015

By Larry Caretsky
CEO, Commence Corporation 

The selection of any software program (including CRM) can be a grueling and frustrating exercise and for good reason. Most businesses do not have people on board who are professional software evaluators, and there are no hard and fast rules that you can follow to ensure you make the right selection. Of course, those that are uncomfortable with the selection process can always engage the services of a consulting firm, but in most cases especially for smaller companies, I am not sure this is necessary. The key is to make sure you do not fall into a few common traps that so many smaller businesses do. I have a few recommendations that I think will ensure you don’t.

Collage business plan stock photo by kromkrathog at

Trap #1. Not knowing what business challenge(s) you are trying to solve and what results you hope to achieve.

This is a big one and stems from management failure to get engaged before the evaluation and selection process even begins. There is not a CEO or business owner in the world that has ever asked his staff to go out and get a one of those CRM systems for the business. Executives are much more focused on solving one or two business problems. Maybe it’s finding a solution to capture, manage and share customer data, maybe it’s a need to better manage the sales process or to help build brand recognition via automated marketing campaigns. Regardless of what it is, it’s always well defined.

Executives also look for a return on their investment or an expected outcome as a result of implementing the software. Perhaps they want to become a more efficient sales and marketing organization or provide better customer service. They will also have a plan for measuring success. If management has not outlined their specific business requirements provided a budget that supports a solution that will meet these requirements and identified what they expect as a measure for success then you have a flawed process. Let’s take a look at what happens when there is no management involvement or direction.

As the lead person, you do not want to ruffle any feathers so you survey each department and make a list of all of their requirements, categorized by must haves, and would like to have. The list gets longer and longer with each interview and when you are done, you now need an enterprise level solution to address all the requirements. So you send your list to a handful of vendors with one objective; let’s see who can meet all of these requirements at the lowest cost. You then narrow the decision to one or two vendors and present them to management only to learn that the company does not need that level of functionality and the solutions you have recommended are too expensive.

Wow, you did not expect this. Now you have to spend more time going back to the vendors you disqualified because they did not meet all of the original requirements. What makes matters worse is that you still do not have clearly defined business objectives, which means you have increased the chances for making a bad decision.

Trap #2. All CRM solutions are alike so let’s simply do a Google search and begin talking with those that appear on page one.

The fact is that all CRM solutions are not alike and just because one company appears on page one of a search does not necessarily mean that one is best for your business. In fact, hopefully you are aware that the reason those companies appear in the top positions of the search engine is because they have paid to be there. Don’t make your CRM selection a popularity contest. Focus on your business requirements and find the companies and products that meet those specific requirements.

Trap #3. Not asking the right questions of the CRM software provider.

OK management has clearly defined the functional requirements for the business and given you a budget to work with. That’s great, you have avoided trap number 1. You know that the companies listed on page one of the search engines are paid placements and may not be the best solutions for your business so you have also avoided trap number two. You are now ready to dig in and start evaluating the features and functions of the few CRM systems you have selected. That’s all fine and you should start the process, but beware of trap number three – not asking some pretty important questions to the CRM software provider. I have outlined a few of them below.

3 Key Questions to Ask:

1. Who is the cloud service provider storing my data?

Well it’s in the cloud so don’t worry, but you should worry because not all cloud service providers are the same. Ask where your data is being stored and who is the service provider? Is the data properly backed up and how can you get it in an emergency? More than one CRM company has closed their doors along with their customers’ data and you don’t want to put yourself in this position.

A quality CRM software provider will use a best in class cloud hosting service to store and manage your data such as Amazon cloud or Rackspace. Others use what is referred to as second tier or third tier providers, probably to reduce their cost. Find out who they use and make sure you are comfortable with the cloud service provider.

2. Product updates and enhancements?

How often does the software provider provide product updates or enhancements and are they included in the monthly/annual fee. This is a big differentiation between CRM firms that are protecting your investment in their software and those that are simply collecting a month or annual fee. If they are not providing updates then it means there is no investment being made in their product and that’s bad.

3. Support services?

Quality CRM software firms have a support staff that will ensure that you realize the maximum value from their solution. They have training guides, videos, documented best practices for the use of their software, and product specialists that you can talk to when needed. This is also a significant differentiator among companies in this industry. Stay away from companies that do not have a telephone number on their web site. What they are telling you is that there is either no one there to speak with you, or they simply have no interest in speaking with you. Either way, this is not the type of organization you should be partnering with.

I hope that this guide will help to improve your CRM selection process and ensure that you make the very best decision for your company. The Commence CRM blog at has a number of good articles and valuable sales tips for getting the most from your CRM software.

Photo Credit: Collage Business Plan Stock Photo by KROMKRATHOG/