The two elemental factors for any company are customer acquisition and customer retention. They both have direct effects on the company’s financial stability, brand prominence, and longevity.
However, the methods differ.
To put it funnily, customer acquisition is somewhat like dating and customer retention is like marriage. They are different in execution, yet the same objective of creating a partnership. While many companies concentrate on the acquisition, did you know that customer retention has a longer, extensively positive effect on a company’s overall stability?
According to Harvard Business Review, acquiring a fresh customer spends 5 to 20 percent more than retaining an already existing one. However, according to Bain & Company, a 5% increase in customer retention produces more than 25% increase in profit.
Know who is winning at customer retention and is ahead of others in the field? Lingopie, a language education subscription service that uses television content. The platform uses international movies and television shows to teach learners languages in an accessible and direct manner. Other subscription behemoths like, Netflix, Disney+ and HBO Max are in fact behind Lingopie’s whopping retention rate of 79% after four months.
This is how they concentrate on their customers every day.
Lingopie considers various sets of data when calculating retention rate and company achievements and through that its success. From the duration of customers staying on sites to which kinds of content they use, this involves a frequent analysis of usage data.
Customer retention is dynamic, changing frequently, and hence needs to be examined daily. Want to increase the customer retention rate? Data is the best metric to start with. This helps to tick off more points of engagement with the customers.
Lingopie offers something of value. This is pretty obvious, but the product needs to offer value from the start. Ensure that the scale of the products is big enough to meet demands. The product should be evolving almost frequently and Lingopie does this brilliantly by leveraging customer data to inform changes in the system. So, not only that their product offers value, meets the demand, but it molds to meet the consumers’ necessities as they proceed.
To expand a brand’s reach, customer loyalty plays a significant role. The reason is that customers who already like the product will contribute to sharing it with their friends, aiding in the brand’s reach. Lingopie conducts regular surveys and considers customer feedback as part of their customer loyalty investing.
Many brands concentrate on bringing customers in but lack efforts to keep them lingering. And Lingopie does this as it offers consumers an enduring relationship both because their product offering is of value and they continue to change following customer needs. However, is this system applicable to all industries across the world?