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Customer Retention for Service-focused Businesses

Key Takeaways;

-      Customer retention is the last stage of promotion

-      Encouraging customers to repeat their purchases play a vital role in the service businesses' success

-      Customer feedback loops and customer education program are the two most important methods of retaining customers

-      Remember that it's cheaper to retain a customer than to acquire one


Whatever you are offering in your service business, your business's longevity is mainly dependent on your customers. Service businesses are trust-oriented, so encouraging customers to come back can have a significant impact on the success of your business.

In the previous step, we talked about three stages of promotion for service-based enterprises;

1.   Who is your customer?

2.   What type of media do you want to focus on?

3.   How do you convert visitors to paid customers?

4.   How do you retain your customers?

As stage four is so important for service businesses, we decide to discuss it in this step.

Let’s start by explaining what customer retention is.

What is customer retention for service businesses?

Customer retention is the process of encouraging existing customers to keep buying your services.

70% of companies say it's cheaper to retain a customer than acquire one. So, it can influence the growth of your business.

To summarize, customer retention refers to the activities you should take to retain as many customers as possible.

You have come a long way to reach new prospects and convert them into paid customers. You don't want to lose them quickly, especially if you are running a service-focused business. Because you need to spend a great deal of money for customer acquisition, it's not that easy to convince your target market that what you are offering is better than others.

So, customer retention is a preeminent factor for service providers.


What are the best customer retention strategies for service businesses?

There are many ways to improve customer retention, including

  •  Onboarding programs

Onboarding programs refer to the education of your customers. How much time do you put into teaching new customers how to use your service? You need to assign specific representatives to teach your customers according to their needs. This way, customers can save time, and they will realize how your service will solve their problem.

  • Customer service

Don’t be a stranger. Be there for your customers when they have a question about your service. When you are operating in the service industry, make sure you arrange various communication tools to resolve your customer's issues.

Remember that 5% of people would rather message than call customer service.

  • Customer base  

You need to make a long-term investment in your customer base. When you are implementing onboarding programs, you create a knowledge base for your upcoming customers.Not only do you create content about your services, but also your loyal customers can explain their experiences that cultivate positive impact and loyalty.

You can also create a community forum to share your business's knowledge, along with the information you get from your customers.

  • Keep in touch

Build 24/7messaging channels to deliver your content in a consistent and relationship-focused way. Email marketing is an excellent tool for staying in touch with your customers and tell them the good news.

If your customers haven’t interacted with your brand for a while, you should reach out to them and tell them about everything they are missing. In this way, you can use upsell and cross-sell tactics.

Customer feedback loop

Sometimes your customers can give you advice about improving your services. They are the ones receiving your services, and that's why they are the best fit for obtaining feedback. You can use surveys to collect customer feedback. Or ask directly for their comments.

●     Reward loyalty

You should thank your customers frequently. Offer relative discounts to your loyal customers. In this way, they feel they are being valued, which will ultimately increase your brand loyalty.

●     Special offers

Encourage customers to return by giving them special offers in holidays and celebrations such as Christmas, Valentine’s Day, Easter, etc. We all love to be surprised.


Applying relevant customer retention strategies enables you to build a lasting relationship with your customers. And in the service industry, it is so critical since you are working with people.

Additionally, loyal customers are more profitable. According to a survey, only 18% of companies pay attention to customer retention. So, it would help if you focused on encouraging your customers to repeat their purchases.

Here in Frizi, we offer special packages for service businesses that guarantee at least 250 online users for your business. So, you don’t need to spend money to attract customers. You already have enough users to use customer retention tactics.


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