Five Practical Ways to Increase Customer Retention in 2021

It’s not an alien fact that it’s easier and less expensive to retain customers than to acquire them. Yet most business owners and marketers tend to put more focus on customer acquisition instead of nurturing existing customers.

While any business needs to acquire new customers, what’s even more important is keeping customers happy and satisfied — it is the most rewarding action any business can have because happy customers keep coming back, you’ll see organic growth in your customer base through referrals, and will boost the lifetime business value and higher revenue.

Studies also substantiate that acquiring a new customer costs five times more than retaining an existing customer and that a satisfied customer will provide 2.6 times more in revenue than the fairly happy one. And customer retention is also a surefire way to reduce churn — lowering the churn rate by 5% can increase profits by up to 125%.

These numbers demonstrate how all-important it is for businesses to build amazing relationships with their customers and keep their customers coming back for more.

So here are a few effective tips you can follow to increase your customer retention rate in 2021:

1: Map out the customer’s journey

The best way to understand your customers from the very first point of interaction is to anticipate their customer journey toward converting on a purchase. Start by gaining a better understanding of these questions:

  • How did people become aware of your business?
  • What communication channel would they prefer to be engaged on?
  • What happens after someone makes a purchase?
  • How would you quickly verify the customers' transactions?
  • Is there any payment method or purchase channel where the customers may be experiencing difficulty?
  • How would you handle and re-engage cart abandonment?

It is important to acknowledge that different customers will have differing exchanges and experiences with your business, therefore, think about multiple communication and payment channels but with customer behaviours. Multiple journey maps, based on different customer personas will help identify and examine what is needed to optimize your retention efforts.

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2: Optimize your marketing strategy to Communicate well and engage with your customers

If you are not communicating regularly with your customers, the relationship weakens and it becomes increasingly easy to have no contact. Identify their prefered communication channels and keep them up to date with relevant notifications.

SMS, email (and now WhatsApp) play an important role in customer communications. The more you communicate with your customers, the higher your chances of strengthening your relationship with them.

It is however important to send personalized messages, so invest in rewarding messaging tools you can integrate with your web applications or CRM to help prioritize optimizing your engagement based on the actions taken by each customer, such as signing up, making a purchase, etc.

To keep track of these points, engagement tools such as the cross-effective messaging APIs on Termii can be of great help in connecting and verifying your customers seamlessly across channels like SMS, voice, and WhatsApp. You can schedule a demo with our in-house expert to get started here.

Equally important, make sure you keep a close eye on your past communications with each customer. Particularly when you’re dealing with customer service issues. It’s important to keep track of everything that’s been said between you and the customer so you can provide them with the service and resolution they expect.

This way, your customer will know that you’re paying attention and it will improve your chances of retaining them.

Image source: Termii’s Dashboard

3: Make your returning customers happy with a reward for their loyalty

When a customer has made a purchase or referred your business, offer them something of value to remain loyal to your brand or an exclusive deal offer dedicated to loyal customers. A customer getting rewards for desirable actions on your business will feel special and valued and there’s a good chance of retaining their loyalty.

4: Offer a valuable upsell

Upselling is a remarkable way to bring customers back to your business. Customer retention often relies on your ability to offer an even more impressive opportunity than the one that got those customers to convert in the first place. Upselling is asking your customers to try out a more expensive product or service. The more upsell opportunities you show customers, the more chances they have to make one — they’ve already been introduced to your business, so they know what value you provide.

Image source: SendPulse

5: Request for feedback

Asking for reviews from your customers serves two prominent purposes:

- It gives you insight into how your customers feel and think.

- It makes customers feel good because you value their opinions.

Boring surveys might not be the way to go, encourage people to provide in-depth answers instead of just ranking statements from one through 10. An email that asks all of your subscribers to reply with their thoughts would do the trick.


These are some of the best ways you can start to increase customer retention and promote brand loyalty in 2021. The bottom line is to ensure that your customers have a pleasant and memorable experience interacting with your business.

Furthermore, make sure you can precisely measure if customers continue to have that experience.

Got any more ideas that worked for you in retaining customers? Let us know in the comments.

Customer retention statistics source

Cecilia Abegunde

Termii helps businesses verify their customers across SMS, voice, and instant messaging channels.