12 strategies to improve customer retention

Customer retention is a metric that measures your ability to turn one-time buyers into repeat customers and keep them over time. It’s the inverse of churn: while churn shows who’s leaving, retention reveals who’s staying and why.

Think of it like hosting a dinner party. You can send the best invites (acquisition), but if your guests leave after ten minutes, something’s missing. A strong retention strategy ensures they stay, enjoy themselves, and want to come back. The same is true in business. Without a deliberate retention strategy, even the most effective marketing can result in a leaky funnel. But with the right focus — such as on great experiences, timely support, and thoughtful interactions — you turn short-term interactions into long-term relationships.

Customer retention isn’t just a metric — it’s a business strategy with lasting impact. While acquiring new customers is necessary for growth, retaining the ones you already have is how you build sustainable success. Why? Because loyal customers don’t just buy again — they spend more, refer others, and require less support. In fact, research shows that increasing retention by just 5% can boost profits by 25% to 95%. By investing in retention, you’re not only safeguarding revenue — you’re compounding it.

Beyond financial performance, customer retention is a signal that your product, service, or experience is meeting or exceeding expectations. It reflects a brand’s ability to build trust and value over time — something no flashy campaign can substitute. Retained customers are more likely to share customer feedback, which gives you a critical window into what’s working and where to improve. And when those customers feel heard and valued, they become engines for customer-led growth by organically amplifying your reach through reviews, referrals, and word of mouth.

In short, improving customer retention helps you do more with less — lowering acquisition costs, increasing lifetime value, and turning satisfied users into your most powerful marketing channel. When you focus on retention, you’re not just keeping customers — you’re building momentum.

To improve customer retention, you first need to measure it. The right metrics give you visibility into where customers stay, where they drop off, and how your strategy is performing. Here are five key metrics to include in your retention strategy:

Customer retention rate (CRR) measures the percentage of customers who continue doing business with your brand over a specific period. A high CRR indicates that your product, service, and experience are delivering ongoing value — keeping customers engaged and loyal. To calculate CRR, use this formula:

Customer retention rate = [(Customers at end of period – New customers acquired during period) ÷ Customers at start of period] × 100

For example, if your company started the quarter with 100 customers, ended with 110, and gained 30 new customers during that time, your CRR would be:

[(110 – 30) ÷ 100] × 100 = 80%

This means you retained 80% of your original customers — an important signal of customer satisfaction and brand strength. Measuring CRR regularly helps you track loyalty, identify churn risks, and refine your customer retention plan to increase long-term engagement.

Customer churn rate is the inverse of retention — it tells you what percentage of customers have stopped doing business with you over a given timeframe. While some churn is inevitable, a rising churn rate can be a red flag that something in your customer journey isn’t working. It’s a powerful early warning system for customer satisfaction. To calculate churn, determine how many customers you lost in a period and divide that by the total number of customers at the start of that period. Then multiply by 100 to get the percentage.

Customer churn rate = (Lost customers ÷ Customers at start of period) × 100

Understanding churn helps you take proactive steps — like improving onboarding or closing gaps in support — before it impacts your bottom line.

Repeat customer rate tracks the percentage of your customers who return to make another purchase. This metric is especially useful for e-commerce and retail brands, but it’s applicable across industries. Repeat buyers are a signal that your experience is working — they liked it enough to come back. And that’s a key sign of healthy customer engagement and strong brand affinity. To find your repeat customer rate, divide the number of customers who made more than one purchase by your total customer base, then multiply by 100.

Repeat customer rate = (Number of repeat customers ÷ Total number of customers) × 100

A rising repeat rate often indicates that your post-purchase experience, loyalty programs, or product quality are hitting the mark. It’s a great complement to other retention metrics because it sheds light on behaviors — not just numbers.

Purchase frequency rate shows how often your customers buy from you within a specific timeframe, usually annually. This metric gives insight into how engaged your customers are beyond the first purchase. A high purchase frequency often signals satisfaction, loyalty, and strong brand affinity, while a lower rate may point to missed opportunities in your follow-up experience or retention strategy.  To calculate, divide the total number of orders by the number of unique customers within the same period:

Purchase frequency rate = Number of orders ÷ Number of unique customers

Tracking frequency over time helps you spot seasonality trends and test new retention strategies, such as loyalty rewards or product recommendations.

Customer lifetime value (CLV) represents the total revenue your business can expect to earn from a customer throughout the entirety of their relationship with your brand. It’s one of the most strategic retention metrics because it ties together purchasing behavior, loyalty, and overall customer impact on your bottom line. High CLV customers are often your most engaged — and most profitable — audience. To calculate CLV, multiply the average order value by the number of purchases per year, then by the customer retention rate:

Customer lifetime value = Average order amount × Purchases per year × Retention rate

High CLV customers are often your most engaged and your biggest growth opportunity. This insight helps guide your customer retention strategies and prioritize your most valuable audiences.

Once you’ve measured where you stand, it’s time to take action. The strategies below are designed to help you strengthen relationships, reduce churn, and increase customer retention at scale.

Today’s customers expect seamless, consistent experiences across every touchpoint — from social to email to live chat. Omnichannel support delivers on that expectation by connecting conversations across platforms, giving your agents the context they need to respond quickly and personally. By resolving issues faster and creating smoother experiences, brands build trust and reduce the likelihood of customer frustration or churn. A well-orchestrated omnichannel strategy ensures customers feel seen, heard, and valued — making them more likely to stick around.

To get started, implement a unified customer engagement platform that brings all your channels together. Equip your agents with real-time insights so customers don’t have to repeat themselves. When done right, omnichannel support improves satisfaction and strengthens long-term loyalty.

Speed matters, especially when customers need help. A fast first response — even if it’s just to say “We’ve received your request” — can have a major impact on customer satisfaction. It shows your team is paying attention and sets the tone for the rest of the interaction.

Automate first-touch replies that acknowledge the issue and set clear expectations around resolution time. When customers know they’ve been heard and understand what happens next, they’re far more likely to stay patient — and loyal.

Nothing drives customers away faster than impersonal, repetitive support. If they have to explain their issue again and again to different agents, frustration builds. On the flip side, personalized support makes people feel seen, understood, and valued.

Equip your team with tools that surface key context — like past purchases, previous tickets, and preferred channels — so they can pick up every conversation where it left off. Encourage agents to use customer names, reference past interactions, and tailor their communication style. These small but meaningful details turn one-off interactions into long-term relationships.

When customers feel appreciated, they’re more likely to stick around. Loyalty programs offer a way to say “thank you” that also keeps customers engaged. Whether it’s points for purchases, exclusive discounts, or early access to new products, the right incentive can deepen the customer-brand connection.

Consider implementing a tiered rewards program or sending surprise perks to long-time customers. Track participation to learn what motivates your audience — and use that data to personalize rewards even further. With the right approach, loyalty programs not only boost retention but also turn satisfied customers into vocal advocates.

A customer community isn’t just a support forum — it’s a space where your customers can connect, share insights, and help each other succeed. When customers feel part of something bigger than the transaction, they stay engaged longer. Online communities also create ongoing value beyond the initial purchase — helping customers get the most out of your product, solve problems faster, and discover new use cases. They’re also a rich source of voice of the customer insights that can inform product development, messaging, and support strategy. That continuous support deepens loyalty and reduces the likelihood of churn.

Get started by building an online community tailored to your audience’s needs. Invite your most passionate customers to help seed content, moderate discussions, and welcome new members. Choose a scalable platform — like Khoros Communities — that enables intuitive navigation, gamification, and seamless integration with your other engagement channels.

Retention starts with listening. When you ask customers for feedback — and show that you’re acting on it — you build trust and make them feel heard. Feedback uncovers experience gaps, surfaces recurring issues, and points the way to smarter decisions across support, product, and marketing.

Use regular surveys, in-product prompts, and community posts to capture customer feedback in real time. Then, close the loop: communicate what you’ve learned and what’s changing as a result. When customers see that their voices shape your roadmap, they’re more likely to stick around for the journey.

Your support agents are on the front lines of retention. When they’re equipped with the right tools and training, they can turn even tough interactions into loyalty-building moments. But when they lack authority or context, trust erodes quickly.

Empower your team with customer knowledge bases, smart routing, and the flexibility to resolve issues without escalation. Recognize their contributions and invest in their development — because the better their experience, the better your customers’ will be.

Personalization isn’t a trend — it’s a customer expectation. According to McKinsey, 71% of consumers expect brands to deliver tailored experiences, and 76% feel frustrated when that doesn’t happen. Whether it’s product recommendations or timely messages, personalization signals that you understand — and care about — your customer’s journey.

Use customer behavior, engagement history, and preferences to create contextual, relevant interactions. Even small gestures like birthday messages or usage tips can deepen the relationship and help increase customer retention.

Referrals are one of the most effective — and cost-efficient — strategies for customer retention and acquisition. When customers advocate for your brand, they reinforce their own loyalty while introducing new people to your business.

Design your referral program to be simple, rewarding, and aligned with your brand. Offer perks that matter: store credit, exclusive offers, or donations to a cause. When done well, referral programs become a natural extension of your customer-led growth strategy.

No one enjoys returning a product — but a frustrating return process can permanently damage customer trust. The easier you make it for customers to change their minds or fix an issue, the more likely they are to return in the future.

Simplify your return process, set clear expectations, and empower your team to resolve issues quickly. Consider offering pre-paid return labels, easy-to-follow instructions, and proactive communication throughout the process to reduce friction and build goodwill. Fair, transparent policies show customers that you’re committed to their satisfaction — not just their dollars.

Subscriptions are a powerful tool for driving retention — especially when they offer convenience, savings, or exclusivity. Whether it’s curated product deliveries, access to premium content, or benefits like free shipping, subscription models create a recurring relationship that keeps your brand top of mind.

To make your subscription model work, ensure that customers have control, transparency, and flexibility. Make it easy to modify, pause, or cancel their plans — and use data to personalize the experience over time. When done right, subscriptions don’t just lock in revenue — they reinforce long-term brand loyalty.

One of the most effective ways to increase customer retention is to keep delivering value long after the initial sale. Educational content, expert insights, and exclusive events help position your brand as a trusted partner, not just a vendor. When customers feel they’re gaining knowledge, access, or inspiration by staying connected to your brand, they’re more likely to remain loyal.

Offer blog posts, webinars, live Q&As, or tutorials that address your customers’ real-world challenges. Host invite-only events — whether virtual or in-person — that give them access to your team, product roadmap, or user community. You can even spotlight customer success stories, helping users learn from each other while reinforcing their investment in your product. These ongoing touchpoints create a sense of belonging and deepen the emotional connection to your brand, which is a powerful driver of long-term retention.

To scale these efforts, consider embedding this content in yourcustomer community, where users can access self-service resources, engage in discussion, and stay informed about upcoming opportunities.

Here are five standout brands that have successfully strengthened customer loyalty, reduced churn, and deepened engagement. These examples include both online community-led approaches and broader customer experience strategies.

Adobe’s online community is a vibrant, global support forum where customers share tips, troubleshoot issues, and collaborate with peers. By enabling customers to solve problems faster — and often without needing a support ticket — Adobe delivers a frictionless experience that keeps users engaged long after their first purchase. This peer-to-peer model reduces support costs while building brand affinity, making the Adobe Community a key part of its customer retention strategy.

AARP exemplifies the power of delivering valuable content and exclusive experiences through its Virtual Community Center — a hub of free, interactive online events and classes designed for learning, self-improvement, and fun. From fitness sessions and cooking demos to financial planning workshops and expert Q&As, AARP offers members ongoing opportunities to engage with meaningful content tailored to their interests and life stages.

This strategy not only reinforces AARP’s value beyond its core services but also fosters a sense of belonging and continued growth. By consistently showing up with content that informs, inspires, and connects, AARP strengthens long-term member loyalty and deepens its role as a trusted companion in daily life.

Starbucks’ Rewards Program is a masterclass in using loyalty incentives to drive repeat business. Members earn points (Stars) for every purchase, which they can redeem for free items and exclusive perks. Through app-based personalization — like targeted offers and order-ahead convenience — Starbucks ensures each customer feels recognized and rewarded. The result? Over half of Starbucks’ U.S. sales now come from Rewards members, who spend nearly three times more than non-members.

Spotify retains customers by making the listening experience feel deeply personal. With features like Discover Weekly, Wrapped, and mood-based playlists, Spotify uses behavioral data to deliver content that resonates on an emotional level. This kind of personalization keeps users actively engaged — and often makes switching to another service feel like starting over. It’s a retention strategy rooted in relevance, consistency, and emotional connection.

HubSpot’s online community is a cornerstone of its customer engagement strategy. Designed to serve marketers, sales teams, and customer service professionals, the community offers peer-to-peer support, product tips, and access to HubSpot Academy resources. But more than just a support hub, it’s a space where users share best practices, solve real-world challenges, and connect over shared goals.

By empowering users to learn and grow together, HubSpot deepens product adoption and strengthens long-term loyalty. The result is a highly engaged user base that not only finds answers but also finds a sense of belonging, reducing churn and increasing customer lifetime value.

When it comes to retaining customers, few strategies are as powerful or as scalable as a branded online community. A well-designed community does more than reduce support costs. It gives your customers a place to ask questions, share experiences, find answers, and build real connections with your brand and each other. That sense of belonging is what transforms casual users into lifelong advocates.

Khoros Communities helps brands bring their customer communities to life quickly and effectively. With built-in moderation tools, AI-powered search, gamification, and analytics, Khoros Communities is designed to meet your customers where they are — and keep them coming back.

Whether you're aiming to boost engagement, gather feedback, streamline support, or co-create value with your users, our platform provides the infrastructure and flexibility to scale those efforts with confidence.

Want to see how a branded community can help increase retention and drive deeper loyalty? Request a demo today.