While delivering an exceptional customer experience undoubtedly contributes to positive customer retention, it is essential for retailers to continuously improve on their retention efforts. Every business will see a different level of correlation between customer experience and retention, which requires the tracking and assessing of key customer metrics. The first of these metrics is the repurchase rate, indicating the percentage of customers who make additional purchases within a specific timeframe. This rate serves as a tangible measure of the loyalty retailers aspire to cultivate. Another aspect of loyalty is reflected in the referral rate, representing the percentage of customers who recommend the retailer to others. A well-prioritized customer experience often results in a higher referral rate. Conversely, when customer experience falls short, the churn rate comes into play. This rate signifies the percentage of customers or revenue lost over time when retention efforts prove unsuccessful. Analyzing these metrics provides insights into the balance between one-time buyers and repeat shoppers. A low retention rate signals a need for improved CX, while steady or growing retention suggests a positive trajectory. To learn more about how these rates influence the success of a business, please see the infographic featured alongside this post.
How CX Can Combat Customer Churn an infographic offered by BillingPlatform, a premier provider of gateway billing solutions