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How can you design a customer retention process that's more customer-focused?

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Customer retention is a key metric for any business that wants to grow and thrive in a competitive market. However, many customer retention processes are designed from the inside out, focusing on the company's goals and tactics rather than the customer's needs and preferences. In this article, you will learn how to design a customer retention process that's more customer-focused, using a simple framework and some practical tips.

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1 Understand your customer segments

The first step to design a customer-focused retention process is to understand who your customers are, what they value, and how they behave. You can use various methods to segment your customers, such as demographic, behavioral, psychographic, or value-based criteria. The goal is to identify the different groups of customers that have distinct needs, expectations, and motivations, and to tailor your retention strategies accordingly.

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Ben Norton

Transformative Leader of Sales, Revenue & Growth, Complex Problem Solver, Global Teambuilder,, Scaling with Enterprise Sales, B2C Marketing & Advertising Expert
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Stop thinking of your customers as foreign creatures and engage with your own marketing and sales activity - think clearly and honestly about what is 'spray and pray' and what is targeted. You likely have and will need both. Spend time understanding AND AGREEING what behaviours and attributes constitute YOUR highest value customer. Don't just jump on board with industry metrics - think about it. Do you want spend or lots of PR or both for example? Retention is about understanding WHO is worth keeping and why, not just begging everyone to stay. Do the fundamental work underneath your 'best' customers and go from there.

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2 Map your customer journey

The next step is to map your customer journey, which is the sequence of interactions and touchpoints that your customers have with your business, from awareness to loyalty. You can use tools such as customer journey maps, personas, or empathy maps to visualize and empathize with your customer's experience, pain points, emotions, and goals. The goal is to identify the key moments of truth, where your customers make decisions or form impressions about your business, and to optimize them for retention.

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Ben Norton

Transformative Leader of Sales, Revenue & Growth, Complex Problem Solver, Global Teambuilder,, Scaling with Enterprise Sales, B2C Marketing & Advertising Expert
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Still the most fundamental and important process to fully comprehend and often this missing due to siloed teams owning sections of the lifecycle - so making it seem futile mapping it out in the first place. It used to be the case that you could simply keep reacquiring your customers through third-party data tactics - these are almost gone today and so a recognised customer has even more intrinsic value - her journey is therefore of high importance if you want to keep and GROW your customer base. Once you have mapped all the touchpoints in the lifecycle and figured out the gaps you need to fill, carry out a prioritisation exercise to determine which initiatives will deliver most value with the least complexity to deliver.

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3 Define your retention objectives and metrics

The third step is to define your retention objectives and metrics, which are the specific outcomes and indicators that you want to achieve and measure with your retention process. You can use frameworks such as SMART (specific, measurable, achievable, relevant, and time-bound) or OKR (objectives and key results) to set clear and realistic goals for your retention process. The goal is to align your retention objectives and metrics with your customer segments and journey, and to track your progress and performance.

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4 Design your retention tactics and channels

The fourth step is to design your retention tactics and channels, which are the specific actions and methods that you will use to engage and retain your customers. You can use techniques such as segmentation, personalization, automation, gamification, loyalty programs, or referrals to create value and incentives for your customers. The goal is to choose the most effective and appropriate tactics and channels for your customer segments and journey, and to deliver consistent and relevant messages and experiences.

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5 Test and iterate your retention process

The final step is to test and iterate your retention process, which is the process of experimenting and improving your retention strategies based on data and feedback. You can use methods such as A/B testing, surveys, interviews, or analytics to collect and analyze data and feedback from your customers. The goal is to learn from your results and insights, and to make changes and adjustments to your retention process as needed.

By following these steps, you can design a customer retention process that's more customer-focused, and that will help you increase customer satisfaction, loyalty, and advocacy.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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How can you design a customer retention process that's more customer-focused?

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3

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1 Understand your customer segments

2 Map your customer journey

3 Define your retention objectives and metrics

4 Design your retention tactics and channels

5 Test and iterate your retention process

6 Here’s what else to consider

Strategy

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How can you design a customer retention process that's more customer-focused?

1

2

3

4

5

6

1 Understand your customer segments

2 Map your customer journey

3 Define your retention objectives and metrics

4 Design your retention tactics and channels

5 Test and iterate your retention process

6 Here’s what else to consider

Strategy

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