Customer Retention Management

Customer retention is the activities that is performed to make visitors continuously use the website.

Customer Retention Management

Everything About Customer Retention Management

Every product that is created or designed is primarily to resolve certain problems or to focus on a particular group of audience. So the features that are provided should satisfy the needs of the users in the best way, for them to like your website.

But it is not always necessary for the visitors to use the website or product that you designed. Sometimes the users will feel frustrated or not get satisfied by it and so on. The reasons to cause this behavior can be different, but ultimately the loss is for the developers.

This behavior of the users towards can be calculated and analyzed using Customer retention rate. So let's have a detailed look on what is customer retention rate and everything related to it.

What is Customer churn?

Any digital product, a website or app will have a large number of visitors every hour. If you set a targeted time and calculate the number of visitors you can analyze the users visiting and the time they spend in the website.

But there are possibilities for the customers to leave the website, coz they may feel that the content is not necessary. This loss of customers for the website or any product for a particular time period is known as customer churn.

What is Customer retention? 

Observing the customers leave the site, you can just stay quite. At the end it is the users who are going to get benefitted from the product that you have designed. Executing new ideas and strategies would help in increasing the UX.

The actions, ideas or strategies that are enforced to the website, to improve the overall performance or the objective of the website to increase the number of visitors is known as customer retention.

You can also state it in other ways, that is customer retention is the activities that is performed to make visitors continuously use the website. Only with large number of users visiting, you can increase the productivity of the site.

How can you calculate Customer Retention?

1. Customer Retention Rate:

Customer Retention Rate

Customer Retention Rate is used to calculate the number of users who stay in your digital product in the targeted time period.

CRR = ( No of members at the end of time period / Total number of members from starting time period to the end) * 100

Using CRR you can actually know the number of users who actually stay in the website, and can help in increasing the retention rate of the website.

2. Annual Churn Rate:

Annual Churn Rate

There will always be a significant of loss in the number of customers who visit your site every year and to calculate this you can use Annual Churn Rate. It is the percentage loss of customers from a particular website every year.

Annual Churn Rate = ( No of lost customers per year / Total number of customers per year) * 100

Collectively calculating the loss in number of customers annually can give you better insights of the performance and usability of your website.

3. Cohort Customer Churn Rate:

A group of users visiting the website will have a common interest or their reason of visiting the will be the same. In such cases, them leaving the website can also be similar. Calculating Cohort customer churn rate can help in identifying those common points and you can focus on optimizing it.

4. Customer Lifetime Value:

Every customer visiting the website, will spend or stay in the website and invest according to their needs. CLV is to measure this, which means it is the average revenue spent by the customers towards a company in their entire lifetime associated with the company.

5. Repeat Purchase Rate:

Single time purchase or one time users are not we should concentrate on. Holding a company, we should focus on gaining loyal customers for a lifetime. Repeat Purchase Rate is used to calculate the percentage of users who make repeated purchases in the product.

What is the importance in calculating customer retention?

As you know getting more number of visitors for the website is extremely important, likewise retaining the users who visits the site also matters a lot.

1. Reduce the focus on marketing:

Marketing your product or website is way too hard and the cost that is spent is usually high. But there is one way of marketing that naturally happens for everything and that is through the users and visitors of the site.

Every user visiting your website will definitely recommend your services to other, if it is highly satisfying and to do this retaining the users to the website is important. If you start to disappoint them, then neither do you get new customers nor the old ones.

Developing new strategies and improvising the design to increase the customer retention rate can significantly improve the productivity and you can have a better workflow. Whatever it is the customers are the end users for all your products.

2. Focus on revisiting customers:

A larger percentage of users entering the website are generally to just visit and know about the website. Maybe they could have landed in the wrong site, or the solution to their problem wouldn't have been found out.

In such cases, focusing on the customers who repeatedly visit the website is important. Coz, they are the ones who are going to invest in the product and get benefitted. If suppose any small change that you make, frustrates them then it will be loss.

3. Determine the popularity:

The customer like your product, they perform the desired action in your website which is a great step. But you have to consider them as single time users. There are great number of users, who prefer your product and stay loyal by making purchases frequently.

Finding out the percentage of users who repeatedly and frequently make purchases is important. Coz that's how you determine the popularity of your brand and website. Customer retention rate gives you the data related to the loyal and trusted customers, so that you can focus greatly on their needs.

What are the ways to improve customer retention?

Improve Customer Retention

More than acquiring new customers, it is also important to retain the customers who visit your website. Every new strategy that is implemented has to benefit the new customers and the old customers and this is how you improve the customer retention rates.

There are certain ideas and strategies that you can implement to increase the retention rates of the website.

a) Remainders through emails:

Professional way of handling and sending requests to other is done only through emails. The same applies for marketing your company or product through on boarding emails. Remainders through emails in one of the most used marketing strategy.

More than anything, you have to constantly explain your product features to the users through emails. There are possibilities for the customers to forget the features that is provided. You can constantly say the changes that you implement through the emails.

b) Loyalty programs:

When you visit any hypermarkets, you can find them providing memberships or loyalty cards with certain benefits. That's a great strategy to make the customers visit the place repeatedly, so that they can use the benefits.

This can also be implemented in your company. A good loyalty program with great benefits can make the users purchase it. To avail it people revisit the website, which automatically increases the customer retention rates of the company.

c) Push up notification:

Another way to interact with your is through the push up notification feature. Now that all sorts of communication happens through mobiles or laptops, users being in front of screens is usually high so reminding through push up notification is a great choice.

Not just that, you can also reach out the customers who hasn't visited the website in a long time. Regaining the old lost customers is definitely the best way to increase the retention rate and that can be done through push up notifications.

d) Discounts and offers:

When you look into any e-commerce platform, they will have a personalized offer or deals in a particular time period. Customers generally flood during those times to enjoy the discounts and this is the best campaigning way.

Creating a personalized offer period or discount strategy for your company can make the customers revisit the website during that period. You can also send emails to the customers during the deal times to increase the customer retention rates.

e) Understanding customers:

The next big leap in increasing the productivity of the website can be done by understanding the customers who are visiting. Being in a digital product, it is hard to interact and know the feeling of the customers.

To know their thoughts and opinions, it is best to take a survey related to your product and website. Based on their responses you can make efficient changes depending on the preferences they expect from the product.


Every small step that you take is related to the customers who visit the product regularly. The UX they experience inside the website is what makes them decide whether to continue or leave the site.

Knowing the customer retention rates greatly help in concluding how great the performance and usability of the website is. Only when the users return, we would know that they like the product that we have designed.

There are enormous strategies and features that help in analyzing the customer retention rates, like

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