To many business owners, it’s common to assume that customers have become harder to please. Whether there’s truth to that or not isn’t as important as finding out the best way to please your customers. The fact is that every smooth transaction and sales experience sets a new standard in their minds. When that standard isn’t met, clients start to drift away long before they officially “leave”.
It’s no wonder, then, that data from Qualtrics showed that in 2024, over $3.7 trillion in global sales were at risk due to bad customer experiences. This was based on data collected from over 28,000 people across 26 countries.
If you work in marketing, it’s critical that you understand how to ensure that customers keep coming back to businesses that hire you. Today, let’s explore the science behind retention.
Brand Reputation Is an Often-Ignored Factor in Good Retention Strategy
While some companies lose clients because of slow replies or dull experiences, others lose them because of something much deeper: a rupture of moral trust. Look at the situation with Uber. Between 2017 and 2022, the drivers working for the company reportedly sexually assaulted riders almost every 8 minutes. That’s extrapolated from the 400,181 reports that a NYT investigation revealed.
Meanwhile, the company only admitted to 12,522 serious incidents. As a result, countless victims are now filing Uber lawsuit cases to seek justice.
This could be dire news for the company, given the number of victims who could start litigation. TorHoerman Law notes that potential settlement fees can be as high as $500,000 to $1 million per tier 1 or severe cases.
Countless women will now choose to avoid the company because its reputation has been lost. When trust breaks at that level, no amount of marketing can restore confidence. Customers are rarely forgiving when safety or integrity is in question, and they’re not wrong for holding their ground. Thus, emphasize early on to your clients that reputation management is fundamental to retention.
Don’t Just Satisfy Customers, Delight Them
Retention often collapses when businesses believe that “satisfaction” is enough. In reality, customers stay where they feel cared for in small, human ways. According to one report by McKinsey & Company, companies that invest in creating ‘customer delight’ manage to outperform their peers in revenue, growth, and shareholder returns. More importantly, the delight factor was responsible for a 25% increase in reusage intentions, or better retention.
When we talk about delight, it’s relevant to note that this doesn’t come from coupons and small discounts. It shows up when customers notice thoughtfulness from the business. This could range from remembered preferences, faster resolutions, or a real apology when things go wrong.
As technology becomes more dominant and the world starts to feel commercialized, moments of personal effort stand out strongly. The good news is that every business has the opportunity to build retention like this without resorting to manipulation. You just have to realize that attentiveness makes the dynamic feel human and personal again.
Get Businesses to Treat Their Employees Well
In marketing, the customer ends up getting all the attention. After all, that’s who businesses care about, and that’s who they want you to focus on. That said, the employees clients interact with are the living pulse of retention. If the team is disengaged, it ends up having a ripple effect on customers.
So, you should point out this factor to your clients. After all, according to Gallup’s State of the Global Workplace report from 2024, employees who were highly engaged helped increase customer loyalty and engagement by 10%. They also manage to sell more, with a 17% increase in sales.
This employee-customer connection tends to get overlooked because it feels indirect, yet it may be the most reliable predictor of client behavior. A cheerful, proactive employee signals that the company functions with internal respect. This is one of the many secrets that businesses can use to keep their customers.
Frequently Asked Questions
1. What is an example of customer retention?
A simple example is a coffee shop offering loyalty points that earn you a free drink after a few visits. It’s not just the reward but the habit it creates. You keep coming back because you feel noticed and appreciated.
2. What are the three R’s of customer retention?
The three R’s usually stand for Retention, Referral, and Revenue. Keep your customers happy (retention), let them spread the word (referral), and naturally see more consistent income (revenue). When these three align, your business grows without constantly chasing new clients.
3. How to improve client retention?
Start by listening closely to feedback and fixing small pain points fast. Train employees to care, not just serve. Personalize communication, follow up after purchases, and admit mistakes honestly. People stay loyal to brands that feel human and dependable.
Ultimately, customers rarely leave “easily.” They leave when they feel unseen, unsafe, or disrespected. While your clients may have a firm belief that loyalty programs and discounts are the key to retention, that’s obviously not the entire picture. You will need to convince them and prove with results that retention relies much more on genuine customer satisfaction.
