Six Strategies to Boost Customer Retention for Small Businesses

As business owners, we must have faced some problems with regards to understanding our customers, especially when it comes to discerning the ways to keep the product that we sell and the services that we offer on top of the customers’ mind.

Many businesses make the mistake of investing huge capital into attracting new customers through several marketing schemes, but forget to strengthen its relationship with these customers, as well as its already existing customers. It must be noted that customer retention has several advantages for a business and may even be more effective in improving revenue than customer acquisition. Nonetheless, customer acquisition and retention often go hand in hand.


In business, customer retention is the ability of your organization to keep its customers over a certain period of time, thereby turning them into repeat customers and preventing them from patronizing your competitors.

Businesses often utilize several customer loyalty programs and initiatives to boost their customer retention, and for small businesses such programs includes:

  1. Incentivizing the customers through giveaways, contests and referral bonuses;

  2. Giving discounts and gifts to the most active customers and/or clients;

  3. Delivering fast and personalized support for your customers and/or clients; or

  4. Simply taking a genuine interest in your customers’ personal life.


Averagely, an early-stage small business owner invests up to 20% of their capital to advertising online and offline. Although, this is essential for the business in its early stage, not utilizing customer retention strategies may lead to the loss of these newly acquired customers. And for established business owners, even those with a large customer base, you stand the risk of losing a huge number of your customers to competitors.


To improve customer retention, you first have to look at your entire customer experience. The customer experience involves everything customers think and feel when they encounter your brand. Broadly, there are six strategies to take in boosting customer retention:

  1. Focus on creating a positive and useful customer experience for each customer in their interaction with your business.

  2. Improve customer service by responding to their question promptly, listening to their concerns with your product or services, and providing them with personalized services.

  3. Stay in touch with your customers through WhatsApp, Email, or Text Messaging.

  4. Create customer loyalty programs through providing discounts, credits, and gifts.

  5. Ask for feedback from your customers and act accordingly on it.

  6. Ensure that you employees are happy and loyal to your business.

Thank you for reading this piece! We hope it helps you succeed in your business!

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