Customer retention is an essential factor for any B2B business or organization. It is believed that a customer who returns for your products and services is better than attracting new customers. Now, the question here is how? How do you boost your customer retention rate? What tactics should you use to keep the customer churn minimalized? Before we dive in to cure your curiosity, let us understand what the customer retention rate is and why it is essential for your B2B business to learn about it.
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What is the customer retention rate?
Customer retention rate is the percentage of people(Customers) who stay connected to your business even after completing their purchases.
Customer retention rate highly depends on the impact of your products, services, and post-sale support. This is crucial as it helps you drive revenue ten times faster. How? Keep on reading to know more.
Why is customer retention rate influential?
Customer retention is one of the most important criteria for any organization. It assesses how successfully a firm or brand can keep its customers coming back for more. A respectable customer retention rate indicates that customers are pleased with the products or services provided by a firm and are likely to return.
Customer retention is significant for B2B companies since it immediately affects their bottom line. Companies may better understand their consumers and design better tactics to keep them engaged and loyal by knowing why the customer retention rate is highly significant. This will assist them in developing strong ties with their clients, which will help them in increasing their sales and earnings. Other than that, make sure you know these 6 Client Relationship destroying Mistakes.
How to measure the customer retention rate of your business?
I hope you understand the concept of customer retention rate; if yes, let us know how you can calculate it with the metrics of your business.
Calculating the CRR is as simple as solving a 6th class student’s math problem. You need to derive a few metrics for it. Here’s the list of metrics you require:
- Customers you have at the start (S)
- Customers you have at the end (E)
- Customers gained in the period you’re measuring CRR (G)
Let’s take a short name for every metric. I have assigned a one-letter word to every metric mentioned above. Note: Customer retention rate is CRR.
With this, now let us check the formula for calculating CRR:
- CRR% = (E – G/S) X 100.
For instance, let us assume that your E is 120, S is 110, and G is 25. Now let’s try to fit everything into the formula.
- Customer retention rate% = (120-25/110) x 100
The answer is 86.36%; an average healthy CRR must be around this number. However, it depends on which industry you sell your products and services.
Also Read: Measure Community Engagement: Key Community Metrics You Should Track
What effect does community building have on customer retention rates?
Creating an online community website is an excellent approach to boosting client retention. An online community may help customers feel more connected to the company and provide them with a place to share their experiences and thoughts. In addition, it can assist in fostering a sense of belonging and trust in the brand, leading to increased consumer loyalty.
Furthermore, having an online community website helps businesses get clients’ feedback on their products or services, which may lead to enhanced customer service and experience. It will also assist businesses in better understanding what their consumers want and require, allowing them to customize their products or services accordingly. These benefits of creating an online community website lead to increased client retention rates.
How to build an online community website?
Building an online community is like solving a puzzle game in this digital era. You need not gain coding knowledge, nor do you get a complete team to make it. All you have to do is to buy hosting services, a domain name, and a theme for your community website.
There are thousands of themes and plugins available for free and a fee in WordPress. Are you new to WordPress community building and want more knowledge before joining? You can book a consultation meeting with our founder, Mr. Varun Dubey (He has more than ten years of experience guiding international clients in building a thriving online community, e-learning website, and much more).
Also Read: How to Improve Customer Retention on Your WordPress Site
1. Getting Started with An Online Community
You will need the following items to create an online community website:
- Get web hosting services.
- Get a domain name.
- WordPress should be installed on your site server.
2. Choosing a theme for your website
Although elementor and other plugins may be used to develop a theme for your WordPress website, choosing a pre-made theme is the most technical and cost-effective option for most brands and enterprises.
The Reign Theme is one among them; it is a white-level community-building solution supported by BuddyPress and WordPress. That implies you must establish your community using the BuddyPress plugin.
3. Get additional plugins for your community
You can buy or get additional plugins for your online community plugins. You can choose from thousands of free and paid plugins in the WordPress directory. Or, you can get this BuddyPress Community Plugin Bundle, which includes some of the nastiest plugins to help you build a reforming community website.
Monitor and update your website time-to-time
The final stage in creating an online community is to continue managing your online community. You can select to moderate manually. We recommend you employ moderating plugins (BuddyPress Moderation Pro, the plugin you get in our BuddyPress community plugin bundle) or engage community moderators.
Also Read: Increase Student Retention For Your Online Course
Wrapping It All Up
A conclusion is confusing as it just sums up loads of words in a fifty to hundred-word paragraph. However, we know what’s not confusing you anymore. What effect does community building have on customer retention rates, and how do you get started with one?
We hope you understand that your consumer is the lifeblood of your company. You must ensure their contentment to create your success. Thanks for reading! Read more of such informative blogs at Wbcom Design’s Blogs.
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