Businesses have always focused heavily on customer acquisition, but the costs associated with acquiring more new customers are high. This is when businesses realize that they should focus more on customer retention.
But getting customers to come back again and again is not an easy task. This article provides examples of unconventional customer retention strategies and successful companies that excel at providing engaging customer experiences.
Let’s dive in!
Contents
Why Your Customer Retention Strategy Is So Important
Acquiring new customers Definitely a worthwhile investment. But things have changed. Customer acquisition costs (CAC) continue to rise, and it’s forcing brands to rethink where their money is actually making an impact. Because throwing more budgets at acquisitions only works if people stay, and most don’t.
According to ShopifyCAC varies by industry, and ranges from $21 per new customer in arts and entertainment to $127–$129 in fashion, home or beauty. And if you are selling electronics? Buckle up — that’s $377 per new customer. And that’s just to get them in the door. There is no guarantee that they will stick around.
You’re no longer just competing on product or price. You are competing with how well you treat people. If you drop the ball on experience, CAC becomes sunk cost. 76% Customers will stop doing business with a company after just one bad customer experience.
Moreover 70% Customers choose brands based on an expectation of a good experience. In other words, despite all the customer acquisition costs, you don’t stand a chance if there’s nothing positive about your brand, and that’s where customer retention and loyalty come into play.
When customers are appreciated and noticed, they stay. And they even start recommending your brand to their friends and family. And that’s the ultimate goal — if you manage to turn your customers into brand advocates, you can rely on word of mouth as one of the most powerful marketing weapons, especially for small businesses.
Without further ado, let’s go over the customer retention strategies that will help you increase your revenue through upsells and increase customer lifetime value.
⭐ Get more reviews like this. With our free guide on how to get more reviews: 8 tips to increase rankings, reputation and income!
7 Customer Retention Strategies and Why They Work
With some marketing magic and a little luck, you can get one-time customers to buy from you. But you can’t convert them into loyal customers using the same formula. You need a customer retention strategy. To help you out, we’ll look at seven customer retention strategies and examples of successful businesses that have cracked the code. Let’s get your creative gears turning.
1. Collect customer data to personalize offers.
Data is the lifeblood of effective marketing. And it shouldn’t just be reserved for large companies. If you’re a small business, collect the kind of information that lets you send better, more personalized offers. Birthdays are a great place to start.
Magnolia Bakery These nails. When you sign up for their newsletter, they ask for your date of birth, and in return, you get a 10% discount as a gift. This kind of exchange, the value of information, is the backbone of smart, consent-driven personalization. And when you use that data to make relevant, timely offers, people buy.
2. Offer a subscription model.
One-time users are expensive. You spend a lot of money to get them, they buy once, then they disappear as if they never happened. This is not sustainable, especially if you are a small business trying to do more with less. This is where the subscription model comes in. There has been considerable growth around the subscription economy. $1.5 trillion. The reason? Because it works.
If you can create thoughtful, simple, repeatable offers that actually make sense for your product, the subscription business model can be your goldmine. Think curated coffee delivery, refillable beauty kits, or surprise treat boxes.
take it yes pleaseFor example. They deliver freshly roasted beans to your door every week (or whatever cadence works for you). No guessing, no resetting, just good coffee on autopilot. The result? A product that becomes part of your daily ritual and a brand that you stick with.
Subscriptions flip the script from chasing customers to keeping them. You get a predictable income. They get a frictionless experience. Everyone wins. Plus, subscriptions open the door to building deeper relationships.
3. Encourage re-entrepreneurship through education.
Another way to keep customers coming back is through education. Any product or service that improves with knowledge is a prime candidate for educational content. If your customer would benefit from learning how to use it, improve with it, or integrate it into their life or workflow, then you’ve got an opportunity. Think cookware, gardening tools, supplements, fitness gear, camera gear—the list is endless.
Oven Pizza Oven Teaches users how to get the most out of the product. Their content covers everything from wood vs. gas ovens to how not to burn the crust to cleaning and storing your pizza oven. Here’s the thing: Once customers learn how to make a decent pizza, they want to make it better. That means more accessories, more components, more trips at Ooni.com.
This product-led strategy turns a single transaction into an ongoing relationship. So, whether you’re in cookware, skincare, or power tools, the move is the same: teach people how to get the most out of what they’ve bought. The more confident and competent they feel, the more likely they are to stick around and spend more.
💡Looking for more ideas to grow your business? Check out our free guide for 37 great ways to promote your business (whatever your budget!).
4. Collect feedback to improve the experience.
Want to know what’s working? Ask your customers. Customer feedback is one of the most underused yet powerful tools in your retention toolbox. This can help you figure out what to double and what to fix.
externalAn outdoor furniture company sent out a short survey asking customers to share their experiences. Winners will have a chance to win a $50 Amazon gift card.
But here’s the key: Collecting feedback is only half the job. You actually have to do something with it. If multiple people say your checkout process is a nightmare, fix it. If they want more color options, do a few tests. Applying feedback shows customers that you care, that you’re listening, and that you’re ready to improve.
5. Gamify the experience.
Rewards programs have evolved over the years, from “spend $500, get a $5 coupon” to engaging, gamified experiences that encourage consumers to engage with the brand. Granted, gamification taps into the same part of our brain that makes us check our phones every five minutes or score points in our favorite video game.
Take a skincare brand for example. half-Their rewards program isn’t just transactional, it’s interactive. Users earn points for doing everyday things like following a brand on Instagram, sharing their birthday, signing up for texts, and Referring to friends. They have shifted the script from “buy more, earn more” to “engage more, get rewarded”.
In this way, they turn passive buyers into active participants, and every interaction counts and deepens relationships. People like to earn, they like to be promoted, and they like to get credit for things they were probably going to do anyway. So give them that little dopamine hit and make it fun.
6. Partner with other brands to organize sweepstakes.
Strategic brand partnerships, especially for gifts And sweepstakes is a great way to increase visibility, re-engage your audience, and not spend your entire marketing budget. The first step is to find brands that complement you, not compete with you. People who speak to the same crowd, have the same voice, and hunger to grow, just like you.
take it The original pickle shotFor example. They partnered with Miron Crosby, a boot brand targeting the same audience. Together, they ran a sweepstakes, and the grand prize was a custom pair of Pickle cowboy boots. During the sweepstakes, participants had to follow the original pickle shot, find the official cheap post, and comment on where they would wear their new shoes first.
These collaborations don’t just attract new eyes; They remind your existing customers that you are part of a larger lifestyle that they want to be a part of. More value, more relevance, and more reasons to stick around.
7. Organize live events to build a strong community.
Live events are the cornerstone of small business marketing. Whether it’s a florist hosting wine and design nights or a karate school running a parents’ night out, the goal is always the same: to get people in the door, build visibility, and become a go-to name for your location.
take it Emilia GeorgeFor example. They’ve made their maternity brand a little more personal by hosting real-world events like in-store pop-ups, panel discussions, and community gatherings. These events increase foot traffic, build loyalty, and help them stand out from the digital noise.
So, be sure to integrate your digital and brick-and-mortar channels to create ubiquity. Show up in people’s inboxes and in their neighborhood. Remember, your live events feed your digital marketing, and your digital channels drive traffic to your events.
Start with customer retention strategies that work.
And there you have it—seven offbeat customer retention strategies. From gamified rewards to community events, these strategies will help you retain customers and grow your business. Brands that invest in keeping their customers happy, engaged and coming back are smarter. If you want to accelerate business growth with customer retention, Let’s talk.