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imagine if there was a formula that could help you understand if you were winning the battle to retain your customers well there is and I'm gonna show you how welcome to my business and marketing channel my name is Raj this channel is all about finding your USC unique success combination if you're interested in that topic there is a link in the description below today we're talking about retention and the importance of retention when we talk about marketing there are four areas we like to address awareness traffic conversions and retention retention is extremely important if you want a growing company so right now I'm gonna show you how to calculate customer retention however after I do this I'm going to give you some ideas to help you keep the customers that you've worked so hard to earn this is so important if you want a growing business the first thing you need to decide is what period of time are you calculating are you calculating a week a month a quarter or a year and there's nothing wrong of keeping track of multiple timeframes for this example we'll use one month but there are three numbers you need to know you need to know how many customers you had at the end of that period at the end of the month how many new customers you have and how many customers you had at the beginning of the time period or the beginning of the month your customer retention rate looks like this customer retention rate equals the end of the month number of customers subtracted by the number of new customers and divided by the number of customers you started out that time period with then times that number by 100 so let's calculate that number we end our month with 100 customers in total and then we subtract 20 of the new customers that we earned during that month and that equals 80 then we divide by the number of customers we started the month with which was 90 and that equals 0.88 we then times by 100 and that equals 88% is 88% good well that depends on the industry you're in some industries actually want a low retention rate while others I think most want a high retention rate if it's over 85% I say you're doing pretty good and what I like to do is just compare each time frame for example month to month or a quarter to quarter or a year to year am i doing a better job keeping the customers I already have actually the numbers you really need to look at are how much does it cost to earn a new client and if you think about it the cost is generally many times more than that little bit of extra effort that it might take to keep the current clients do you already have now I have some ideas that can help you right now to retain your customers I also have some ideas on some other videos so I have a playlist specifically to help you improve retention and you'll find that at the very end of this video the number one thing that you can do to improve customer retention is to improve communication every time I implement something to improve communication with my clients I see my retention number go up I'll share some of the best communication techniques I know of in a moment but first I want you to think about your company what is your company mission is it something that a customer could latch onto be proud of be a part of think about the big brands a lot of times people will wear their logo on their shirt because they believe in the brand they believe in the mission they believe in what that brand stands for now you don't have to be an apple or a Nike however you can have a mission and be proud of that and encourage your customers to also be a part of that mission and together you're gonna build stronger bonds beyond providing good quality support it's also important to ask for feedback or offer surveys to figure out what it is that your customers really care about believe it or not quite often our customers don't care about the things we think they should or do care about so asking them can really bring in some insight on how we can serve them better I like to under promise and over deliver it's much better than over-promising and under-delivering remember it's our reputation it's so easy to ignore our good customers because they are not the squeaky wheel but it really is important to take time and reward the customers that are good for us let them know how awesome they are so they don't feel neglected now there are rewards programs that you can put into place and actually one of the videos in the playlist talks about reward programs so check that one out but you want to reward the people who are actually making your company run smoothly not the people who are causing all the problems now here are four things that I think will help you communicate better with your customer and the fourth one is the most important one first of all personalize as much as you possibly can personalize the communication that you have with your clients and customers and email use email and you personalize those emails don't just say hey or howdy make sure you have the proper name I get really tired of having to tell people my name is not hello or hi it is not people want personalization and take the time to get involved in your social media we have a combination here 7 5 3 1 and the 1 stands for channel building so find the channel which most of your customers are in now you probably have to take an omni-channel approach you probably have to have multiple channels to connect with most of your customers with social media being active in social media will help that communication flow and they will feel like they have access to you to your brand and they'll be more apt to stay with your brand because they're comfortable with your brand and the last one is certainly the most important and that is to say thank you it's amazing how many companies don't show that appreciation as we talked about a moment ago companies are not saying thank you to people who have actually trusted them that they would do what they say they would do that their product would do what they say their product would do and they gave money for that opportunity they trusted the brand and to keep that relationship going it's going to be a lot stronger if that person if that family if that business feels like they are appreciated and thank you is one of the easiest ways to show that appreciation hey if you're new to this channel be sure to subscribe and if you would like more information about customer retention check out the videos in this playlist right here