7 Proven Customer Retention Strategies That Actually Work

Repeat buyers tend to spend 67% more than new customers. If you’re here to learn how to get the most out of your existing customers, you are in the right place. 

In this article, we’ll explore 9 strategies to help you retain customers and strengthen brand loyalty. We will also share the 3 mistakes you need to avoid or fix to make sure you apply your strategy successfully.

By the end, you’ll know how to encourage your customers to keep investing in your brand to drive your revenue.

7 Must-Know Customer Retention Strategies

Take note of the practical points and rank them based on which ones will have the biggest impact on your existing customers ASAP.

1. Use Unified Inbox For Seamless Customer Support

Gather all your communication channels—emails, chats, social media messages—into one place to simplify how your customer service team manages inquiries. With this, you and your team can deliver excellent customer service without missing a beat.

How does this help retain customers?

It cuts down on response times and minimizes your shoppers’ frustration. Customers feel heard and valued when they can reach you anytime, anywhere, without rehashing their inquiries or complaints. You can also use this as one of the go-to strategies to build customer trust and increase satisfaction by showing how quickly you act to resolve their issues. 

How To Do This

Use Glassix to centralize all your communication channels and effortlessly integrate with your existing tools. With this, your team can handle customer concerns without jumping between apps to guarantee conversations flow smoothly. 

Glassix: AI-Powered Customer Communication Platform For Small Businesses and Startups

You can also use our platform to set up intelligent routing so you can assign user conversations based on expertise, not just availability. This helps you automatically connect your customers with the best-suited agent to solve their issues.

Customer Retention Strategies - Glassix Messages Dashboard

To further make this strategy a success, use the unified inbox to create instant feedback loops. After each customer interaction, send a quick survey to gather customer feedback. Use that feedback to adapt and improve your customer service processes. 

For example, if multiple customers mention slow response times, adjust your workflow to prioritize speed and guarantee higher customer satisfaction in future interactions.

Industries That Benefit The Most

All industries benefit from this, especially eCommerce and healthcare companies. The former thrives on speed and personalization. Shoppers also expect instant responses across platforms. A unified inbox ensures fast, tailored interactions which will reduce abandoned carts and increase repeat purchases.

In healthcare, timely and accurate responses directly impact patient care. A unified inbox keeps everything organized to let healthcare providers prioritize urgent needs and foster trust for better patient retention.

2. Cultivate A Community To Boost Brand Advocacy

Create a space where your customers feel connected to your brand and each other. Let them share their positive experiences, offer advice, and help each other solve problems. 

When you build these relationships, it:

  • Turns them into advocates
  • Strengthens customer loyalty 
  • Builds a community that promotes your brand organically

Why?

Because your customers are more likely to trust their peers.

How To Do This

Create a Facebook group where your customers can discuss products, share suggestions, and connect with your brand. Then, answer their questions as soon as you or your team can to keep them engaged. 

To create an FB group, follow these steps:

Customer Retention Strategies - Facebook Group Creation

In addition, set up a Discord community to enable real-time conversations among customers and your team. Use this instant connection to make them feel like they’re your priority and that they’re part of your brand’s inner circle. 

Another way to build your community is to use tools like Zoom to bring your customers together for webinars or Q&A sessions. This builds direct interaction, strengthening customer relationships and creating a sense of belonging.

Industries That Benefit The Most

Those who are in the gaming, health and wellness, and motorcycle accessories industries benefit the most from cultivating communities. These niches are passion-driven, where customers are highly engaged and eager to share experiences.

Here’s how they can benefit:

  • In gaming, your app’s players can discuss strategies, share achievements, and form teams. A community lets them connect.
  • For health and wellness brands, customers can share supplement recommendations, progress stories, and product reviews which creates trust and credibility, turning satisfied customers into advocates.
  • If you’re selling motorcycle accessories, build a community for riders to discuss their bike modifications, gear, and riding experiences. They can even plan group rides, giving them more chances to bond and chat about your products.

3. Launch Subscription Services To Encourage Long-Term Engagement

Subscription-based services typically retain 40%-45% of their customers on average.

You can launch subscription services to keep users connected to your brand in the long run,  increasing their customer lifetime value. 

Also, this helps you retain customers since it creates a sense of commitment and convenience. Customers don’t have to think about making individual purchases—they’re automatically receiving the products they need.

How To Do This

Offer tiered subscription plans, with each level having different perks. For example, offer basic and premium plans where premium subscribers get early access to new products or special discounts. Think of your Netflix account to better understand how this works. 

To make this a success, consider these:

Customer Retention Strategies - Tiered Subscriptions

Additionally, you can launch personalized subscription boxes. So let your customers choose specific products for their subscription box based on their preferences.

But make sure you keep a wide selection of products available to make sure customers feel they’re getting something fresh and exciting with every box. If they feel like it’s repetitive, they may think it’s not worth it to subscribe anymore. 

You can also offer an auto-renewal option with discounts to encourage long-term signups (6 months to annually). If you’re using Shopify, you can apply this subscription type through the “Shopify Subscriptions” app. 

Industries That Benefit The Most

Subscriptions work best in the beauty and fitness industries because customers in these fields rely on regular product use for ongoing results. 

For example, if you're selling beauty products, subscriptions give your customers a steady supply of skincare, makeup, or hair products. It keeps them on top of their beauty routine effortlessly, helping them stay consistent and feel great.

As for fitness? Let’s say you’re selling digestive supplements. A subscription guarantees your customers always have their probiotics or enzymes on hand to help them stay consistent with their gut health goals. When customers see how dependable your subscription service is, it makes sticking around a no-brainer.

4. Eliminate Stock Shortages To Drive Repeat Sales

Make sure your products are always available when customers want to buy them. 

Why? Read through these stats:

Customer Retention Strategies - Stock Out Statistics

When customers repeatedly find items out of stock, it disrupts their overall shopping experience and frustrates them. This can push them to get out of your site and look into your competitors. 

But if you eliminate inventory shortages, you can strengthen their trust in your brand and build an image that reflects reliability. Both of which can help create a cascade of loyal customers.

How To Do This

Use inventory management software to help you track stock levels in real-time and reorder with ease. Here’s how it works if you opt for Linnworks:

Linnworks | Inventory Management Software

Additionally, these tools let you forecast demand accurately. You can analyze your sales patterns and see when there’s an uptick in demand and what product is hot, especially around the seasonal trends. With this, you can adjust stock levels proactively and avoid running out during high-demand periods.

Besides using software, build strong supplier relationships. To do this, check in with your suppliers regularly—don’t just wait until there’s an issue. Talk to them to stay updated on stock availability and any potential delays.

Customer Retention Strategies - Supplier Relationship

Also, you need to negotiate favorable terms and focus on long-term partnerships. So offer consistent orders in exchange for:

  • Better pricing
  • Faster restocking
  • Flexible payment terms 

Be clear about your needs but open to finding win-win solutions. This lets you minimize delays and guarantee your products stay available for both repeat and new customers. 

Industries That Benefit The Most

If you're in pharmaceuticals, where reliability is a priority for buyers, this customer retention strategy is a must-do. Consistent availability of medications helps safeguard your customers’ health and give them a positive experience. 

If you have a seasonal fashion brand like this beachwear line, inventory is critical. Given that they are seasonal products, most shoppers are likely to buy within a limited time frame only. If you run out during peak season, you lose both sales and the chance to attract repeat customers.

5. Incorporate Sustainable Solutions To Retain Eco-Conscious Customers

62% of consumers say they frequently buy products because of their sustainability.

Customers expect brands to take responsibility for the environment, and if they see that you do, you can boost customer engagement. Nowadays, they don’t just want products—they want to feel good about a brand they support.

So to improve customer retention rate, align your practices with their values and watch them come back with a willingness to spend more. 

How To Do This

Try to work with Green suppliers that use renewable energy or ethical sourcing. This can help customers feel more confident about supporting you knowing that your supply chain is also eco-friendly. 

Here’s how you can choose a supplier:

To further improve the customer experience, switch to eco-friendly packaging. So replace your plastic or non-recyclable packaging with biodegradable or recyclable options. Platforms like EcoEnclose can help you develop packaging made with sustainable materials to reduce your waste. 

Offer a recycling option too for your products or packaging. For example, set up a system where they can return used items for a discount on their next purchase.

Another way to be a more sustainable brand is to use eco-friendly materials. One of my favorite examples of this is Vinyl Status. A friend chose them to create her personalized stickers since they use high-quality eco-solvent ink, which was a big plus for her bulk order. Plus, the stickers are recyclable—so it was a double win for her.

Industries That Benefit The Most

The fashion and food & beverage brands are the ones that can benefit the most since both have significant environmental impact. 

For example, the fashion industry generates massive textile waste and relies heavily on water and chemicals for production. Meanwhile, the food & beverage industry contributes to environmental strain through excessive packaging and food waste. 

So if you're in either of these industries, adding sustainable practices—whether big changes or small tweaks—can make your brand more appealing to customers. They'll feel good about spending money with you again and again, knowing you’re doing your part for the planet.

6. Deliver Personalized Emails To Build Stronger Relationships

Go beyond generic emails or outreach. Instead, focus on addressing your customers’ specific needs, preferences, and goals. Use this as a chance to create a sense of connection and show customers that you value them as individuals, not just another sale.

Plus, meeting customer expectations helps build trust and makes it harder for competitors to lure them away. Do this consistently and you can increase customer retention steadily. 

How To Do This

First, segment your audience based on their needs, interests, or purchasing behavior. This lets you tailor your messaging to each group.

To do this, use CRM tools like HubSpot:

List Segmentation For Marketers in HubSpot (Active Lists)

Once you have your segments, it’s time to customize your emails with client-specific details, like using their name or referencing past purchases. Use HubSpot’s Personalization Tokens to automate this process and send personalized emails at scale.

To further improve your campaigns, complete an email A/B testing. So send 2 variations of your emails and check which performs better. 

Customer Retention Strategies - Email AB Testing Example

Then, use the results to optimize your future email campaigns and significantly increase customer retention.

Industries That Benefit The Most

Every industry can benefit from this, but this is non-negotiable if you’re in SaaS or B2B. Why these 2? Personalized communication lets you offer tailored solutions to help you retain long-term clients. 

For SaaS, let’s say you sell this project management software. If a client consistently inquires about team collaboration, you can send an email to recommend and teach custom integrations with tools like Slack or Notion to address the client’s pain points.

For B2B, let’s say you are in a bulk manufacturing industry like this supplement ingredients manufacturer, you can send personalized emails that address each client’s specific formulation needs, offer tailored product recommendations, and provide timely updates on supply availability.

With those approaches, you’re showing clients you’re in it for the long haul, not just the initial sale. It proves you’re committed to staying connected and growing alongside them every step of the way.

7. Collect & Show Social Proof To Build Customer Confidence

97% of shoppers say that online reviews influence their purchasing decisions, making social proof one of the best customer retention programs. 

You can display positive feedback, reviews, and success stories to reassure your customers that your product or service delivers. Use this to also show that others with the same needs or pain points trust your brand to make them feel confident about continuing to be your customers.

How To Do This

To collect reviews, use testimonial collection software like Famewall. It lets you create a custom collection page to collate testimonials from customers. Plus, you can add a personalized video message to this page to make it more engaging.

Customer Retention Strategies - Collecting Testimonials

You can also offer incentives, like discounts or loyalty reward points, to further encourage them to act.  

After gathering reviews, showcase a few on your homepage to grab attention, and create a dedicated page where customers can browse through all of them. Here’s one of my favorite examples from Mannequin Mall:

Customer Retention Strategies - Mannequin Mall Reviews

Besides the usual ratings and reviews, the brand includes the exact product the customer is reviewing, and it’s clickable so it takes users directly to the product page. They also feature photos from a few customers, adding a more authentic and relatable touch.

Additionally, you can highlight detailed case studies focusing on specific challenges your valued customers faced and how your product helped solve them. This demonstrates your brand’s long-term value, which can help you in retaining customers. 

You should also leverage user-generated content. Encourage your customers to share photos, videos, or stories about your product on social media platforms. This makes your brand feel more relatable and encourages your new customers to continue to engage with you. 

Industries That Benefit The Most

This strategy works best in the luxury goods and real estate industries. For the former, social proof reassures customers by showcasing the quality and exclusivity of high-priced items through real customer experiences.

As for real estate, testimonials and case studies highlight successful transactions and satisfied buyers, making it easier for potential clients to trust your company for such significant investments.

3 Common Mistakes To Avoid When Applying Customer Retention Strategies

Read through these, pinpoint the mistakes that might be holding you back, and take notes of the tweaks you can make to guarantee that your customer retention efforts go smoothly.

A. Not Tracking Retention Metrics

Without checking the metrics, you’re left in the dark about how well (or not!) your customer retention program is working. For example, you create a customer community, but without checking the metrics, you miss that only a few members are talking about your brand, limiting its potential to boost customer retention.

What happens when you do track them?

It helps you identify who your most loyal customers are so you can target them more effectively. Plus, it can give you valuable customer insights into why customers stay or leave.

Customer Retention Strategies - Customer Retention Metrics

To fix this mistake, hire an experienced data analysis expert if you haven’t done so. Tracking customer retention involves various metrics, like revenue churn rate and repeat purchase ratio, each with different calculations. So an expert guarantees accuracy and helps you make smarter decisions.

B. Neglecting Customer Education

This is a big mistake because it leaves your customers unsure about how to get the most out of your product or service. If they don’t fully understand what you offer, they’re less likely to stay engaged or see the value of what you provide. 

But if you guide them throughout the entire customer journey, they can feel more invested in your brand. The more they succeed with your product or service, the longer they’ll stay with your brand. 

How do you solve this?

Offer tutorials, webinars, or guides that walk your customers through the best ways to use your product.

Additionally, set up a dedicated customer success team to make sure your customers get the help they need whenever they face challenges. This ongoing education encourages them to stay engaged and get more value from your product.

C. Focusing Only On New Customers

Selling to existing customers has a 60-70% success rate, while selling to new customers is only 5-20%. 

When you focus only on your newly acquired customers, you can overlook the potential of the loyal ones you already have. Ignoring them can result in losing their trust and missing out on long-term value.

To get out of this tight spot, use loyalty programs to reward customers for sticking with you. This can keep them engaged and feeling appreciated that you’re still prioritizing them. 

Also, you should regularly collect customer feedback from both new and long-term customers to make sure you're consistently meeting their needs. 

Conclusion

With these customer retention strategies in your toolkit, it’s time to sit down with your team and review where you're at with your current efforts. Then, answer this: Are you removing enough barriers to make them repeatedly choose your brand? 

Identify the gaps and choose one of the strategies to apply ASAP. Then, work through the rest of the list. 

To start amplifying your customer interactions, sign up with Glassix today. Use our tools to make sure you’re never late to the party when it comes to connecting with customers. With us, it’ll be more seamless to retain your audience and make sure you're on top of their minds.