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Top 4 Customer Retention Strategies for 2021

Brand Development

The phrase “we put our customers first” is a common statement most businesses include in their marketing messages and mission visions.  

We bet you use it too.

And we can’t blame them, or you, because people love hearing this statement!

It’s one of the things that gets their attention and persuades them to do business with you. So, there’s just no reason not to use it unless you don’t really mean it.  

According to Hubspot, 42% of companies do not collect feedback or survey their customers, which means not everyone who claims “customers first” follows through.  

It’s probably why a lot of consumers feel like companies don’t know them as individuals.    

If you aren’t living up to your promise of putting your customers first, it’s not too late to turn things around.  

Giving your customers what they want and need is the key to keeping them satisfied, growing your customer base, and increasing your profitability.  

While there are many ways you can keep a customer happy and loyal, we are going to focus on the top four customer retention strategies that are proven and tested to work on today’s modern consumers.

Without further ado, let’s get started!

What are the Top 4 Customer Retention Strategies for 2021?

Be Transparent

Did you know that 53% of people are more likely to favor brands that are transparent compared to companies that aren’t, and that 94% of consumers tend to be more loyal to transparent businesses?

Transparency has become a major determining factor for modern consumers when it comes to deciding which brands to support and which companies to buy from.  

If you want to appeal to your target audience and give your existing customers a reason to keep doing business with you, it’s time to be transparent.  

What does it mean to be transparent?

Being transparent means being honest and open to your customers about matters that concern them.

A good example is keeping your customers updated if there are any delays in shipments, or if the item they ordered is not available and might take weeks before it can get delivered to them.  

Letting your customers wait for what seems like forever is never a good idea.  

Another example is apologizing and owning up to your mistakes no matter how small or big it is, like spelling their name wrong or sending the wrong item.  

Of course, being transparent goes way beyond shipping.  

You also want to make sure that your product descriptions are not deceiving and are accurate, and that there are no hidden charges.

We also noticed that people admire businesses who share where they source their items, who makes them, or the processes involved in making their products in a story format.  


This is really great because it builds trust among your target audience and customers, and in a way helps you stand out from your competitors.  

So, what you want to do is walk your audience through how your business came to be, the story behind the people who make your services possible, the process involved in making your products, etc.  

However, you must use the right form of content and platforms to share it to deliver your story in the most impactful way possible.  

Here are the different ways you can share your story:

  • Create a video content  
  • Write about it in your blog
  • Share them on Facebook  
  • Use Instagram Stories to share behind-the-scenes in your office or factory
  • Use TikTok to tell your story  
  • Publish it in your local newspaper

Don’t Ignore Questions, Feedback, and Reviews

If you want to increase your customer retention rate, it’s important to pay attention to questions, feedback, and reviews.  


But first, you want to make them feel comfortable enough to ask questions, write a review, or give feedback.

Here are some tips on how you can do that:

  • Make sure you have a professional website
  • Make it easy for them to access and communicate with you. Consider using messaging platforms like Facebook messenger, Whatsapp, Viber, or whatever is convenient for them
  • Showcase customer testimonials on your website and social media accounts
  • Offer free trials and money-back guarantees
  • Show your willingness in meeting your customer’s need

Once they feel comfortable and start asking questions and giving feedback, you must listen to them and respond.

Just because a customer already purchased from you, doesn’t mean your relationship ends there. Of course, you want to follow up and ask for their feedback to ensure that they’re satisfied and happy.  

It’s the key to making sure they come back, talk about you on social media, and even refer you to their friends and family.  

If they aren’t contented and they raise a concern, make sure to apologize and act upon it unless you feel like the customer is scamming you into a refund. But even if they were, it’s still important that you call them out professionally and respectfully.  

It’s also crucial that you never ignore a question even if the answer seems obvious to you. Keep in mind that this is your business, which means that you know everything about it and your customers don’t. You gotta be mindful of that.

Remember, being prompt in responding to questions and acting upon feedback and reviews is a great way to make your customers feel heard and valued.

Develop a Loyalty Program That Works for Your Customers and Your Business

Having a loyalty program is another surefire way to keep your customers loyal to you.  

Customer loyalty programs help create a more engaging customer experience for your patrons.  


According to a 2021 Customer Experience Trends Report, 75% of customers base their purchasing decisions on their experience. That’s why your loyalty program should always be on point!

There are different ways you can’t carry out a customer loyalty program, but here are some of the most common loyalty program models that work today:

  • Points programs
  • Tier-based programs
  • Mission-driven programs
  • Spend-based programs
  • Cashback programs
  • Subscription programs

Below are some examples of how businesses were able to use these loyalty programs to drive them more success:

  1. Marriot Bonvoy Benefits

Marriot’s customer loyalty points program encourages travelers to book at their hotels constantly whenever they travel to earn points, which they can use to access free hotel nights, lounge access, free dining, and other elite experiences.  

Marriot uses a point-based system to collect data which they can use to better understand their customers and provide a more personalized experience.

  1. Ben & Jerry’s Mission-Driven Programs  

Customer loyalty programs don’t always have to focus on discounts and giving away free items.  

If your company is keen on helping out and has a strong social mission, then mission-driven programs are for you, just like Ben & Jerry’s.  

Ben & Jerry’s offers social justice-themed ice cream flavors and donates sales to different social programs, charities, and causes.  

This is a great way to engage your customers, motivate them to purchase again, and help a cause.  

Be Active on Social Media


Another way of keeping your customers close and loyal to you is by being active on social media.  

A study by Sprout Social found that 89% of consumers prefer to buy from brands they follow on social media.

This means that your goal is to get more people to follow you and give people a reason to follow you.  

But how exactly can you achieve such goals?

By sharing highly engaging content, interacting with your customers in the comment section, featuring them on your stories, and many more!

Here’s what you need to do to start getting active on social media:

  • Optimize your social media accounts. Pick a username that allows users to find you quickly, use your logo as your profile picture, and make sure to provide all your contact information and other important details, including your website in your bio.  
  • Plan things out. Being active on social media takes more than just posting photos of your products every day or sharing random content. You need to have a plan on what to post, the best time to post, what your captions should be and how should they sound like, etc. If you don’t have a strategy, it will reflect on your account and that might affect how your customers and prospects see you.  
  • Create content that piques the interest of your customers and target audience. It could be anything from product hacks to tips and tricks, and busting myths.  
  • Publish videos. Video content is very engaging and they tend to get a lot more shares, likes, and views compared to photos or text-only combined. Right now, people love short-form video content. You might as well take advantage of them.
  • Share your blog posts on social media, especially topics that you think your customers will find helpful or entertaining.  
  • Conduct a social media contest or giveaway to boost brand awareness and increase your following.  
  • Feature user-generated content to show real-life people using your products or services. It also motivates other customers to post about you so they can also get featured.  
  • Create a private group that encourages members to share their personal experiences about your products, fosters healthy discussion with regards to topics that are related to your business, raises concerns, suggestions, and many more. It’s a great way to tune in to what people think about your business and products or services.  
  • Ask your customers what they want. You can use Instagram Stories to do a poll or conduct a survey on what your audience wants to see more from you.  

Keep your business on top of their minds by constantly showing up on their feed and engaging with them on social media!

Are You Ready to Grow Your Customer Base this 2021?

Make the effort to really put your customers first this 2021 using the top four customer retention strategies we shared above!

At Digital Resource, our DR lead manager can help you capture leads, convert them into customers, and transform them into life-long brand-enthusiasts! Contact us today to know how DR lead manager can boost your customer retention rates.  

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