Why Does Your Sales Team Need To Learn Customer Retention ?

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Utsav shah

Senior Writer: Utsav shah

green tickReading Time: 5 Minutes
green tickPublished : March 25, 2020

According to you, what is the best way to grow customers?

The simplest way would be by not losing the existing customers and that is what this article is about.

If you are a business selling products and services, you are already aware of how difficult it is to find, target and obtain a new customer. But what is far more complicated than having the first sale with the customer is forging a relationship with them where they will shop with you again. A right salesperson knows that making a sale is just the first step, and the real job lies in customer retention. 

According to marketing metrics, the rate of selling a product or service to an existing customer is 60-70%; on the other hand, it is only 5-20% for a new customer.

We have talked a lot about the customers and how to maintain a relationship with them. We are sure you are thinking about what customer retention is.

What is customer retention

The activities and actions that an organization or an individual takes to reduce the number of customer defection or withdrawals. The prime intention of this program is to retain as many customers as possible. This can be done in many ways, like giving them loyalty bonuses, gift cards, and so on.  

Here are a few useful customer retention tips that will help your business a lot. 

Customer retention is considered cost-effective and is a great idea to perform brand exercises and create a brand awareness wave. If your customer likes you; they will do word of mouth marketing for free, which is beneficial no matter how big or small your business is.  

i) Do as much brand awareness as possible

But never go overboard with it.

Intimate your customers about the latest offers, promotions, latest product updates, and show them the content that they might be interested in. Try to do much customer engagement by asking their stories by conducting an entertaining contest. 

If the customers haven’t been interactive enough in a while, don’t shy away, nudge them once in a while. Suggest the solution to the problems that might occur shortly. All your effort doesn’t mean you will get immediate sales, but the customer will definitely note you down in the good books. 

ii) Make social media your best friend

If you are a celebrity, you might know how vital paparazzi and being in the news is. The same is the case for companies who want to keep in touch with the customers. A social network can be critical in keeping track of the customer’s contact after the first sale is made. By showing your business’s intimate side, customers will feel more engaged and bonded with your brand

Nowadays, customers tend to write their experience with the brand in the form of comments which gives the company a fair chance to be a Superhero. It doesn’t matter if the feedback is negative or positive, make it a priority to revert to them in the best way possible. Try to monitor your customer’s point of view, interests, and what motivates them. If you do not take care of the handful of angry customers, it will affect the ones who are not. Because social media is live and everyone can see what’s happening and how it is taken care of. 

iii) Get Up Close and Personal With Customer

We don’t suggest stalking them, but a delicate follow up now and then is suggested. You will be happy to know that customers are as concerned about the quality of your service, the way you talk to them as they are about the quality of your product. It is stated that 70% of customer conversion happens based on how nicely they were treated.  

Make your customers feel that you are just like their well-wisher or a friend. Put extra effort into customizing the offer for loyal customers on their birthdays, anniversary, and so on. Ask them for feedback and in return, offer the exclusive coupons and offers.


iv) Be diligent while handling customer queries 

We live in a digital world where we try to dump all our work into digital technology and computers. The same is the case with customers. There were times when a customer called; he could directly connect with a human to resolve his problems. But now the times have changed. The customer will either have to face an IVR or will have to wait for an hour or so to talk to the customer representative. 

But you can make a change to the system. While handling a customer, make sure they speak to someone authentic and sympathetic. You will be shocked to know that 75% of customers feel annoyed when they are kept waiting on the phone line. These are annoyed customers who are never going to come back. And if you even think of redirecting the customer to a FAQ page or suggest resolving the issue via email, it will only anger the person more. Educate your staff to solve the problems on the verge of origination. 

If you empower your employees and make them feel that they can make a difference in customer life, they will feel responsible and motivated. 

v) Never run away from taking the responsibility of your doings

They say that a company is as good as the reputation behind it. If there is an error or problem at your end and the customer has pointed, it doesn’t try to cover or blame someone else. Instead, admit, take responsibility for it and assure that you will resolve it and the same issue won’t arise in the future. And stick with your commitment. Your honesty will make you seem authentic to the consumer. This will only make you an equitable company in front of the customer that is willing to correct the loophole in their business model. 

vi) Keep track of your commitments

You can easily find many companies that are at the top of the market due to one prime reason. And the reason is that what they have committed to the customer they fulfill it well in time. If there is a complaint made by the customer and you said you would resolve it in 24 hours make it top of your priority list and fix it as soon as possible. This will not only help you retain the customer, but it will make a positive brand image. The same customer who had a problem with your product or services will come back again due to the exceptional level of in time customer support you provided.

vii) Treat the customer with dignity

Do you know that according to Kissmetrics, 71% of customers have terminated their relationship with a company due to a lack of excellent customer support? And honestly, we are not shocked to learn this. We understand that it is never easy to let go of a tentative long-term customer, but if a customer is upset, you cannot force them to stay. But always keep in mind that how you part ways with the customer will determine a lot of things. If you end things on a good note, they might give you another chance to redeem shortly. But if you are being stubborn and not being decent enough, they will end up disliking your services and drop a bad review as well. So never try to underestimate the importance of compelling customer retention.  

Always remember that no matter if a customer decides to stay or go, your prime goal should be that they should have a great brand experience. This will result in excellent customer relationships and a higher return on investment. 

We hope these customer retention tips have helped you gain a perspective on how to do customer retention for your business to have a high success rate. Never be compulsive or forceful when you are requesting a customer to buy something from you; it sounds very needy. A customer looks up to the company that maintains their dignity in every scenario.

Updated : March 30, 2022

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