This document discusses how retaining customers can help grow a company and provides 5 steps to improve customer retention. It notes that acquiring new customers is costly, while existing customers spend more and refer others. The 5 steps are: 1) Calculate the customer retention rate, 2) Understand why customers leave by asking for feedback, 3) Tweak products based on feedback, 4) Evaluate loyalty programs, and 5) Build powerful relationships by showing customers they are cared for. This can help build trust and healthy customer relationships.

1. Why retaining more customers can lead your
company to super stardom - and 5 easy
steps to getting the retention engine started

2. Acquiring new customers demands a lot
of money and time
New customer Existing Customer
Acquisition
Cost
Probability of
conversion

3. Return Customers Spend 2/3 Times
More Than New Customers
New customer Existing Customer

4. A Second-Time Customer Refers an
Average of 3 People
Existing Customer New Customers

5. Now that we know why customer retention is
important, develop a measurable customer
retention strategy with these 5 best practices

6. 1. Calculate your company’s customer
retention rate
Retention Rate = ((CE-CN)/CS)) X 100
CE = number of customers at the end of period
CN = number of new customers acquired during period
CS = number of customers at start of period

7. 2. Understand why your customers are leaving
Ask an open-ended question to understand
what worried your customer the most.
Reward customers for their feedback
Why?

8. 3. Tweak your product or service based on
the customer’s feedback
For every customer who bothers to complain,
26 other customers remain silent.
So, make every feedback count.

9. 4. Evaluate your Loyalty program
75% of consumers say loyalty programs
are part of their relationship with brands.
57% of members want to engage with loyalty
programs on a mobile device
Loyalty Card
Reward
points

10. 5. Build a powerful relationship with your
customer
Customers stay with businesses that they feel they are
cared for

11. Vtiger lets your customer facing teams provide a
personal touch to every customer interaction, understand
their needs in advance, and help in time.
This in turn builds trust in customers which eventually turns
into a healthy relationship.

12. Sign up for a free trial to explore Vtiger
today.