Customer Retention Strategies to Maximize Profitability

These are some of the customer retention strategies that can help you boost your revenue and profitability with your most valuable customers

To maximize the profitability of customer retention, it is helpful to identify and segment the most profitable customers based on their lifetime value, purchase frequency and loyalty. This can be done with data analytics tools or customer relationship management software (CRM).

Then create personalized offers to those most profitable customers, and incentives for other customers to join this tier. Email marketing, social media, and mobile apps are great ways to communicate these offers.

Provide exceptional service to these customers. Make sure that they are able to reach a real, live person when they call or email and use surveys to measure their satisfaction.

If you sell high-priced items, have extra quality control for the services and products that you send to your most profitable customers. Make sure that everything you provide for them meets or exceeds their expectations.

Encourage referrals from your most profitable customers. They will be your best source of new customers.