How to Optimize Customer Retention for Your Business


Dec 21, 2020 • 4 min read

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As you know, customers are undoubtedly the most important element in a business. They are a source for every business and the reason behind it. Every company or brand should give their very best to the customers. They are literally the king (or queen).

Unfortunately, many companies are more concerned with customer acquisition rather than maintaining customers. Well, maybe these facts would change your mind about customer retention.


67% of customers who make repeat purchases, buy more in the third year compared to their first six months. When existing customers have such a good relationship or even engagement, that means they trust your brand. They will support you and they are happy to do that.

82% of companies agree that maintaining customers is cheaper than acquiring the new ones. Attracting new customers is surely advantageous, but it involves a lot of hard work and costs like for advertisement and promotion.

  • By focusing on customer retention, you would save some costs and give you a chance to show a commitment as a brand by appreciating your customers. It also would increase your brand value.
  • By increasing the number of loyal customers by 5%, the company can increase their profit 25% up to 95%. Customer loyalty is always important, it can even be useful for acquiring new customers for your brand.
  • By word of mouth from your loyal customers, not only is it a free advertisement, it is also the most reliable one. Because of that, you will get the new customers for free, thanks to your existing one, that helps you increase your profit.

Reasons customers leave

You learned some facts about the benefits of customer retention, so, you need to know how to treat them right. To do that, you should know the reasons why your customers want to leave your brand so you could learn to prevent it.

  • 68% of customers leave because of poor attitude on some part of the service provider.
  • 62% of customers leave because their preferred brands do not provide enough rewards.
  • 62% of customers move to other brands to find a better customer experience.

How to Improve Customer Retention

Don’t worry, it all can be avoided and here are a few ways companies can improve customer retention:

1. Get to know your customers better through personalized

Each customer has a different want and need. With personalizing your service for each of them, they will feel noticed and appreciated. That will strengthen your relationship with them and keep them loyal to your brand.

2. Try customer retention platform

Customer retention platform will help the process of your customer retention strategy. They will collect information to help you find the best strategy to do next.

3. Give feedback

For a better customer experience, feedback should be two-ways. You also need to give feedback to your customers so they will feel appreciated. The form of feedback could be anything, like let your customers know that you like their idea, or the most favorite one, rewards!

4. Rewards, rewards and rewards!

Rewards can increase the value of customer experience. It is exciting and fun! It can help you maintain the good relationship between the customers and your brand and take it to the next level.

To help you maintain customers, the customer retention platform will do the job nicely. They can turn ordinary buyers into loyal customers through the Personalized Membership feature as needed, encouraging customers to promote the brand through social media and also word of mouth, and their digital reward could motivate customers to shop more and continuously.

You can find all those help you need with TADA, the data-driven customer retention platform. TADA has loads of programs and campaigns to ease the process of your customer retention strategy. With the local and responsive customer support, TADA provides you with a timely and empathetic response that can help you find the solution to any of your problems.

Let's Talk to Tada Team


Clara Alverina

I'm marketing enthusiastic and inherently understands that the customer is the single most valuable asset an organization can have, and driven by the unrelenting pursuit of customer-retention focus, engagement and customer experience.