Customer acquisition and customer retention are two essential metrics for any company. Both have an immediate impact on the company’s financial standing, brand notoriety, and longevity.
But the methods are very different.
Customer acquisition is a bit like dating, and customer retention is like marriage. Similar exchanges, both with the same goal of forming a partnership, but different in execution.
Most companies focus on acquisition and devote their dollars to wooing the customer into the first stages of a relationship. But did you know that customer retention has a far greater positive impact on a company’s overall wellbeing?
According to the Harvard Business Review, acquiring a new customer costs five to twenty five percent more than retaining an existing one. But a 5% increase in customer retention yields more than 25% increase in profits, according to Bain & Company.
Lingopie, a language-learning subscription service that leverages television content, is winning at customer retention and ahead of others in the industry. The application uses international television shows and movies to teach customers languages in an accessible and straightforward way. Their retention rate is 79% after four months, higher than other subscription service giants like Netflix, HBO Max and Disney+.
Here’s how they’re working to consistently improve their retention rate, and how they invest in their existing customers on a daily basis.
Use multiple, varied data sets
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When calculating retention rate and company success, Lingopie takes various data sets into consideration. This includes a regular assessment of usage data, from how long customers stay on sites, to which types of content they use.
Customer retention isn’t a static metric—it’s constantly changing and needs to be evaluated regularly. For companies wanting to increase their customer retention rate, data is the best place to begin. If you sell a service platform, like Lingopie, analyze how your users interact with the platform. If you sell a product, consider who is purchasing it, at what times, and how they hear about your product.
Use these data sets to inform your customer retention efforts, and to create more points of engagement with your consumers.
Offer Something of Value
This should be obvious, but your product needs to offer value from the start. Lead in your industry, and make sure that you scale your product (or service) to meet demand.
Your product should be constantly evolving, even if the overarching model doesn’t change. Lingopie does this well by using their customer data and feedback to inform changes in the system. Not only does their product offer something of value, that meets demand, but it changes to meet customers’ needs as they progress.
This can be a large or small scale change. Lingopie has improved the customer experience by listening to their requests for specific content, as well as by adding elaborate AI and neuro-linguistic programming (NLP) features to track how customers use the language learning system in real-time.
Lingopie calls this a “product-centric approach to retention” that is built on the belief that, if the product continues to improve and meet needs, the customer will stick around. And this approach is certainly working.
Focus on Customer Loyalty
Investing in customer loyalty is a critical component of expanding a brand’s reach.
Why? Because those customers who already love the product will share it with their friends, helping convert them into new customers.
Lingopie nurtures customer loyalty by consistently communicating with their users, and offering them a forum to voice both positive and negative experiences. Customer loyalty is driven by listening. Yes, your product matters, but it is essential that the customer knows you created your product for them—and that you are willing to adapt in order to make their experience better.
Lingopie runs regular surveys, places product-feedback options within the system, and also considers customer support feedback as part of their customer loyalty initiative.
Customer retention is statistically one of the most important metrics for calculating a company’s success. So many brands focus on pulling customers in, but neglect efforts to keep them around. Lingopie’s system offers customers a long-lasting relationship both because their product adds value to their lives, and also because they continue to evolve to meet customer needs.
Whether you’re selling a product, service or idea, know that your greatest return on investment will come when you show your existing supporters that their presence and voice matter.