Customer Retention Strategies

One of the biggest takeaways I spotted from Intuit Mailchimp’s analysis of the 2024 holiday shopping season is that the new year is ripe with new opportunities to drive loyalty. Here’s why → 64% of orders from Mailchimp customers with connected stores came from new customers during Cyber Weekend 2024. That's a huge opportunity to grow your loyal customer base! And research we produced with Canvas8 tells us that the best kept secret to driving loyalty is actually grounded in science. Our Loyalty Wheel reveals 4 key drivers of loyalty: 1. Reward: Our brains love rewards. Create a sense of reciprocity by offering exclusive deals, personalized discounts, or early access to new products. 2. Memory: Make it easy for customers to remember (and repeat!) positive experiences with your brand. Design a frictionless customer journey, offer subscriptions for frequently purchased items, and send well-timed reminders. 3. Emotion: Foster an emotional connection that goes beyond transactional exchanges. Align your brand with causes your customers care about, share authentic stories, and build a sense of community. 4. Social Interaction: Encourage customers to share their love for your brand with friends and family. Create opportunities for user-generated content, run refer-a-friend programs, or host exclusive events. And here's how to put it all into action: 🎉 Surprise and delight: Gift your customers with unexpected rewards. And just not generic discounts. Offer exclusive experiences or partner with like-minded brands to create unique offers. 🛝 Streamline every touchpoint: Remove friction in the customer journey with automation. From browsing to purchasing to post-purchase support, make it easy and enjoyable to do business with your brand. 🎯 Prioritize personalization: Craft your messaging and build authentic connections. Use data and AI analysis to understand your customers' values and preferences and use those insights to create content that resonates. 🤗 Give VIP treatment: Make your customers feel like VIPs. Give them early access to new products, invite them to exclusive events, or feature them on your social media channels. Download Mailchimp and Canvas8’s The Science of Loyalty and The Strategic Loyalty Playbook for a deep dive into the science, complete with actionable strategies and inspiring examples: https://bit.ly/49FJayO Make 2025 the year of the loyal customer. You got this.

I've bought 35+ companies in last 5 years. The pattern is obvious once you see it: Some businesses print money. Others barely survive. The difference comes down to one metric: how much each customer is worth over time. Whether you're building to sell or building to keep, here's how to make your customers worth more: Step #1: Know what your customers are actually worth Most people think in "monthly revenue." Winners think in "lifetime value." Formula: LTV = Average Order Value × Purchase Frequency × Customer Lifespan Bad business: • Customer pays $100 • Buys once • LTV = $100 Great business: • Customer pays $100 • Buys monthly for 3 years • LTV = $3,600 36x difference. Same price point. Same customer. Different business model. Step #2: Calculate your LTV:CAC ratio This tells you if you're building something profitable or just treading water. LTV:CAC = Lifetime Value ÷ Customer Acquisition Cost The breakdown: • Less than 3:1 → Burning money • 3:1 to 5:1 → Healthy • 5:1+ → Printing money If you spend $100 to get a customer worth $300, you're barely profitable. If you spend $100 to get a customer worth $800, you're building an asset. Step #3: Keep customers longer If customers stay 2x longer, LTV doubles. Simple math. • Nail onboarding: They bought based on a promise. Deliver that promise in the first 7 days. • Increase stickiness: Integrate into their workflow. Example: Dropbox becomes sticky because your files live there. • Monitor usage proactively: If someone hasn't logged in for 14 days, reach out before they cancel. Real example: Client of mine tracked their customers on LinkedIn. When someone changed jobs, they reached out to both the old team AND the new company. Retained both. Step #4: Get customers buying more often • Usage-based pricing: Basic tier = 5 visits/week. Premium = 10 visits/week. • Add complementary products: What do customers buy before/after using you? Sell that. • Shift to subscriptions: $5,000 one-time project = $5K LTV. $500/month for 3 years = $18K LTV. Step #5: Increase what they spend Implementation fees: Charge for onboarding/setup (standard in B2B) Upsells at purchase: "Customers who bought X also need Y" Premium tiers: Basic/Pro/Enterprise. Same product, different support levels. Step #6: Pick ONE lever and execute for 90 days You just learned three ways to increase LTV: 1. Keep customers longer 2. Get them buying more often 3. Increase spend per purchase Don't try all three at once. Pick the one with highest return for least effort. Execute. Measure. Move to the next. That's how you build a business worth buying. Or better yet, a business worth keeping. -DM P.S. Want to know what your business is actually worth? I built a valuation calculator that shows you exactly how investors would value your company based on these metrics. Comment "VALUE" and I'll send you the calculator plus the breakdown of what makes businesses sell for premiums. My gift to you 👊

Strategic CSMs work renewals 6 months ahead of the due date. ⏳ They have time to de-risk accounts 🤝 They negotiate early and seamless renewals 🚀 They position growth opportunities aligned with value However, prioritising a large number of renewals can be challenging. The biggest mistake a CSM can make is spending too much time on the wrong customers and ending up with preventable churn. So... how can you work your renewals strategically? The best CSMs I know use the priority framework that looks at value vs. risk. 🤑 What's value? - How much the customer spends today - Their growth potential - How important the logo is for the business 🥵 What's risk? - How much value they are getting? - Are there critical product roadblocks? - How much friction are they experiencing? - What's their decision maker's sentiment? - Are there any competitors in the mix? Once you bucket customers into their respective value and risk profiles, you'll have a birds-eye view of your renewals. You can quantify how much falls into each bucket and make informed decisions on where to spend your time and energy. What I've seen yield the best results is: 1️⃣ Priority 1 is to de-risk high-value customers ahead of renewal. You have 6 months to turn around these customers before their renewal date. that's enough time to demonstrate value and regain trust. 2️⃣ Priority 2 is to secure the renewal and growth of healthy high-value customers. You have 6 months to position, demo, trial and negotiate the growth opportunity aligned with the renewal. This will give you the best chance of a seamless net-positive renewal, and it will decrease the chances of offering high discounts to close it in a tight timeline. 3️⃣ Priority 3 is to secure the renewal of low-value healthy customers. You should have an automated flow to help communicate value, validate risk and nurture the renewal of these customers. Wherever possible this should feel like a non-event. 4️⃣ Priority 4 is to turn around low-value, risky customers. The final piece is to find scalable ways to mitigate the risk of low-value customers. This is the most dangerous place, where CSMs get sucked in. Instead of working 1:1, CSMs should find the common themes across these customers and leverage other resources and scalable options like usage/adoption office hours to help them do more and get more value from your solution. This can be baked into your weekly blueprint, so you have focus time to work with a certain type of customer each day. The result? - Stop feeling burned out - Get better results - Achieve better work-life balance What's your strategy for working renewals strategically? 📥 If you're interested in scaling your Customer Success team, consider joining 8k+ CS Professionals who read my weekly newsletter on how to build and scale a CS Team [sign up in the comments section]. #customersuccess #CSM #customerexperience #renewals  #NRR

Elevating Service in Food & Beverage: Keys to Hospitality Excellence The food and beverage industry thrives on delivering exceptional experiences. Whether in a fine-dining restaurant, a bustling café, or a luxury hotel, hospitality staff play a crucial role in shaping guest satisfaction. Here’s a guide to refining service standards and excelling in your role. 1. Understanding Guest Expectations. Guests expect more than just a meal—they seek a holistic experience. This includes ambiance, attentiveness, and personalized service. A warm greeting and sincere engagement can transform an ordinary visit into a memorable one. 2. Mastering Product Knowledge. Knowing the menu inside and out is essential. Staff should be able to recommend dishes confidently, suggest pairings, and address dietary restrictions. It builds trust and enhances the guest experience. 3. Efficiency & Attention to Detail. Precision matters—whether it's setting tables, timing orders, or ensuring that every dish meets quality standards. Attention to small details, such as napkin placements and proper glassware, elevates the overall experience. 4. Clear Communication & Teamwork. Strong communication between staff members ensures seamless service. Efficient teamwork reduces errors and enhances guest satisfaction. Kitchen coordination, order accuracy, and proactive problem-solving are key. 5. Handling Complaints Gracefully. Not every interaction will be smooth, but professionalism is paramount. When guests voice concerns, active listening and prompt solutions demonstrate commitment to service excellence. A well-handled complaint can turn an unhappy guest into a loyal customer. 6. Upselling Without Being Pushy. Strategic recommendations of premium items or combos benefit both guests and the establishment. The key is offering value rather than forcing sales—suggesting a wine pairing or a chef’s special enhances the dining experience. 7. Maintaining Hygiene & Presentation.. Cleanliness is non-negotiable. Proper attire, grooming, and hygienic practices contribute to a professional image and reassure guests of food safety standards. Consistency in presentation reflects a strong brand identity. 8. Staying Motivated & Engaged. A positive attitude makes a difference. Passionate and dedicated employees create an inviting atmosphere. Continued learning—whether through training sessions or observing industry trends—keeps service fresh and dynamic. Hospitality staff in food and beverage are more than servers—they are experience architects. By refining skills, embracing guest engagement, and upholding excellence, professionals can leave lasting impressions that turn first-time visitors into regular patrons.

This AI wellness app got 100 signups on launch day. But 3 weeks later, zero users were left. The founder couldn’t understand what went wrong - until he realized he hadn’t opened the app himself in weeks. Here’s what happened: He built an AI-powered app that analyzed blood diagnostics and gave personalized wellness tips. It was sleek. Smart. And technically impressive. But it failed - fast. Here’s why: ▶︎ 1. He ghosted his own product. As a mentor, I asked him, “When’s the last time you used your app?” He paused. “Not in a few weeks”. If the founder doesn’t believe in the product, users won’t either. ▶︎ 2. There was no expert in the loop. The app offered wellness tips based on blood diagnostics. But there was no medical advisor, no human credibility, no context. In healthtech, if users don’t see who stands behind the advice, they simply won’t follow it. ▶︎ 3. He avoided regulation - then lost user confidence. By calling it a “wellness” app, he sidestepped FDA scrutiny. But that also meant he couldn’t make strong claims. No outcomes. No promises. The result? Vague tips, low trust, zero retention. ▶︎ 4. He focused on tech, not value. It was AI-powered, yes. But not human-centered. No nudge to follow up. No context. No loop to make users come back. So here’s how we fixed it: → He became user #1 - experiencing every friction point firsthand. → Simplified the experience around one real, everyday user goal. → Added medical advisors to review recommendations. → Reconnected with early users to gather unfiltered feedback. Three months later: Retention went from 0 to 18%. And 1 in 5 users started referring a friend. If you’re building in healthtech, remember: Slick dashboards don’t build retention. Trust and clarity do. So what’s the one change you made that finally got users to stick to your product? #entrepreneurship #healthtech #funding

“It’s not enough to just win,” an old boss of mine used to explain. “The other side has to lose, badly.” Nothing gave him more satisfaction than eating his rivals’ lunch - and his competitive nature was contagious. When I started my first business I adopted his approach. But I soon also learned that I had to ally that competitive spirit with a more nuanced approach if I was to retain clients rather than just churn through them. Unlike winning deals, retention isn't just about having the best product — it's about creating value and a level of reliability that rivals can't match. 1. Retain on value, not price: Competitors will use price to try and attract your customers. It’s tempting to drop your yield accordingly, but that’s a race to the bottom. Instead take time to make sure your client can see how much they get for every pound or dollar they invest. Adding extra value will always be more profitable than reducing your fee. 2. Add features before you’re asked to: Write a customer engagement strategy that involves adding useful new services or features for your existing customers at least once or twice a year. Use these to upsell, build loyalty and increase their pain of moving suppliers. 3. Build trust through relentless delivery: Unreliability is one of the top reasons clients will look elsewhere. Meet key clients on a regular basis to understand how their needs are evolving and pivot your offering accordingly. And always keep your promises. 4. Outmanoeuvre your competitors: Never underestimate how determined your competitors will be to knock you off your perch. Devote adequate time to learning from their approach so you know the threat you face. Match your instinct to win new business with an equal determination to retain customers. Crack that and not only will you eat your competitors’ lunch today but you’ll have it every day.

The great equalizer in business is not when you get one customer, but when you stop one from leaving. Way more businesses figure out acquisition and forget about retention. They spend tons of money and time on marketing, sales, and growth hacks, but neglect the most important asset: their existing customers. They don’t realize that retention is the key to sustainable and profitable growth. Why? Because retaining customers is cheaper, easier, and more rewarding than acquiring new ones. According to a study by Bain & Company, increasing customer retention rates by 5% can increase profits by 25% to 95%. Retaining customers also means creating loyal advocates who will spread the word about your brand and refer new customers to you. That’s how you build a flywheel effect that drives organic and exponential growth. But how do you retain customers? • By delivering value, delight, and trust at every stage of the customer journey. • By listening to their feedback, solving their problems, and exceeding their expectations. • By building relationships, not transactions. • By treating them like humans, not numbers. Focus on metrics that matter, you can’t fill a leaky bucket. Plug those holes and keep those customers from leaving. It will be the best investment you’ll ever make for your business.

Trust doesn't come from your accomplishments. It comes from quiet moves like these: For years I thought I needed more experience, achievements, and wins to earn trust. But real trust isn't built through credentials. It's earned in small moments, consistent choices, and subtle behaviors that others notice - even when you think they don't. Here are 15 quiet moves that instantly build trust 👇🏼 1. You close open loops, catching details others miss ↳ Send 3-bullet wrap-ups after meetings. Reliability builds. 2. You name tension before it gets worse ↳ Name what you sense: "The energy feels different today" 3. You speak softly in tense moments ↳ Lower your tone slightly when making key points. Watch others lean in. 4. You stay calm when others panic, leading with stillness ↳ Take three slow breaths before responding. Let your calm spread. 5. You make space for quiet voices ↳ Ask "What perspective haven't we heard yet?", then wait. 6. You remember and reference what others share ↳ Keep a Key Details note for each relationship in your phone. 7. You replace "but" with "and" to keep doors open ↳ Practice "I hear you, and here's what's possible" 8. You show up early with presence and intention ↳ Close laptop, turn phone face down 2 minutes before others arrive. 9. You speak up for absent team members ↳ Start with "X made an important point about this last week" 10. You turn complaints into possibility ↳ Replace "That won't work" with "Let's experiment with..." 11. You build in space for what really matters ↳ Block 10 min buffers between meetings. Others will follow. 12. You keep small promises to build trust bit by bit ↳ Keep a "promises made" note in your phone. Track follow-through. 13. You protect everyone's time, not just your own ↳ End every meeting 5 minutes early. Set the standard. 14. You ask questions before jumping to fixes ↳ Lead with "What have you tried so far?" before suggesting solutions. 15. You share credit for wins and own responsibility for misses ↳ Use "we" for successes, "I" for challenges. Watch trust grow. Your presence speaks louder than your resume. Trust is earned in these quiet moments. Which move will you practice first? Share below 👇🏼 -- ♻️ Repost to help your network build authentic trust without the struggle 🔔 Follow me Dr. Carolyn Frost for more strategies on leading with quiet impact

All retention strategies are not created equal. Or are they? In 2025, companies compete on belonging, not benefits. In the old days, pizza parties and ping pong tables worked. Now you need systematic approaches to keeping talent. Here's 4 levels of employee retention you must understand: LEVEL 1: REACTIVE - PEOPLE QUIT → WE ASK WHY AFTER This is retention theater. Exit interviews where people lie about "new opportunities." Desperate counteroffers that never work. Managers shocked when their best performer gives notice. What it looks like: - Exit interviews only - Last-minute counteroffers - High regret turnover Your HR team is a coroner doing autopsies, not a doctor preventing disease. The fix: Start with stay interviews. Ask people why they stay, what would make them leave, what energizes them. Do this quarterly. Act on what you learn before they're halfway out the door. LEVEL 2: PROGRAMMATIC - ONE-SIZE-FITS-ALL PERKS Pizza Fridays. Wellness days. Ping pong tables. The same tired benefits whether you're 22 or 52, single or supporting a family, engineer or accountant. What it looks like: - Wellness days, swag, offsites - "Engagement" via pizza - Culture defined by events You're throwing spaghetti at the wall hoping something sticks. Spoiler: it doesn't. The fix: Tailor benefits to real needs. Survey by team AND tenure. New parents need different things than empty nesters. Engineers value different perks than salespeople. Stop guessing, start asking. LEVEL 3: STRATEGIC - RETENTION DESIGNED INTO SYSTEMS Now we're getting somewhere. Career paths are clear. Promotions happen on schedule. High-potentials know they're valued. Every process reinforces that growth happens here. What it looks like: - Growth tracks by function - Skills-based promotions - Embedded feedback loops You're not reacting to turnover. You're preventing it through structure. The fix: Align L&D with succession planning. Track mobility rates quarterly. Make internal moves easier than external ones. If someone has to leave to level up, you've already failed. LEVEL 4: CULTURAL - PEOPLE STAY BECAUSE THEY BELONG The holy grail. People stay because leaving would mean losing something irreplaceable. Not perks or pay - belonging. Purpose. The feeling that their work matters and they matter. What it looks like: - Psychological safety - Purpose-driven work - Peer recognition culture Your culture is so strong that recruiters can't poach your people with 30% raises. They've tried. The fix: Train every manager on trust-building. Not a workshop - ongoing coaching. Reward inclusive leadership as much as hitting numbers. Make belonging a metric, not a buzzword. TAKEAWAY: The companies winning the talent war understand that people don't leave companies. They leave cultures that don't value them. They leave managers who don't develop them. They leave futures they can't see. Fix those three things, and retention takes care of itself.

Email frequency matters more than most marketers assume. An analysis of 53,000 emails and 5,300 purchases across 200 customers revealed a clear pattern: the best results come when brands tailor frequency to buying behavior.  The optimal monthly cadence: ↳ 5-7 emails for frequent buyers ↳ 6-10 for medium buyers ↳ 12-14 for occasional buyers When customers aren’t segmented, 7 emails a month deliver the strongest performance. The highest open rates and most purchases over time. Sending only 4 emails reduces lifetime profit by 32%, while sending 10 cuts it by 16%. The reason is simple. Frequent buyers already know the brand, so too many emails create fatigue. Occasional buyers, on the other hand, read more when they’re still exploring and learning. This makes segmentation strategy the real growth lever. Instead of treating every subscriber the same, match communication frequency to purchase behavior. The balance is all about timing and relevance. The right message to the right segment builds stronger engagement, higher retention, and more revenue over time. How often do you adjust your email frequency based on buyer type?