Customer retention refers to the marketing strategies used by a company to maximise the number of returning customers and the profitability of each current customer. Put simply, customer retention is critical for improving the lifetime value of your customers and increasing sales.

It's easy to get caught up in concentrating on attracting new customers and conversions, but it's also important to think about your current customers, too. Customer retention is not only cost-effective, but it's also a brilliant branding exercise for inspiring your customers to become brand ambassadors: if they like the service you offer, they'll recommend you to others for free! Read on for our top tips to get you started:

• Email Marketing. Email marketing is a cost-efficient and effective channel for retaining new clients, and it can be used in a number of ways. Send weekly or monthly newsletters to customers, set up email automation, and reach lapsed customers. Subscriber segmentation allows for more precise targeting and messaging, which can lead to significant increases in open and click through rates. This format can be used to promote new deals, brand changes, or exclusive discounts.

• Social Media. It's important to remain involved and engaged on social media in order to raise brand awareness and grow your online following. Existing consumers who interact with you on social media, on the other hand, may become strong brand advocates. Creating content that promotes interaction (especially comments and sharing) will help you expand your social media reach and increase your brand's credibility.

• Create a Loyalty Program. Returning consumers enjoy being acknowledged and compensated, but loyalty schemes, no matter how basic they are, can have a significant effect on customer retention. Customers would feel encouraged to return to your online store if they know they will be rewarded for doing so.

• ‘VIP’ Discounts. Unexpected discounts, early access to sales, birthday deals, or even a small discount for an item left in an online shopping cart: these are all small but powerful ways to hook consumers and create a memorable experience. Remember that the customer's perception of how they are handled accounts for 70% of the buying experience.

• A/B Testing. Experiment with your digital marketing strategy to see what works best for you and where you can develop. To see if customer retention rates improve, use A/B Testing on your email marketing campaigns or on your website. Some businesses find that hiring digital marketing experts like Birmingham Marketing Agency to audit their current strategy can be the most cost-effective way to progress.

• Enhance Customer Service. Even in our digital world, people still enjoy person-to-person where possible. Research shows that 75% of customers assume that reaching a live agent over the phone or via an online chat takes too long - support systems enable you to connect efficiently with your customers and provide them with the appropriate level of assistance.

• Take Accountability. Your company's brand is only as strong as its credibility. Admit your mistakes and apologise if possible when issues occur. Honesty demonstrates authenticity, which is particularly important in today's world where brands are expected to take a stand on social issues. It also shows consumers that you're willing to fix faulty systems to avoid errors in the future.

• Ask for Feedback. Send your customers an online survey to fill out so you can learn more about what's working and what isn't. You'll never be able to please every customer on every topic, but surveys will help you spot trends you would otherwise overlook. A successful survey should include both multiple-choice and free-text response areas, allowing customers to express themselves more fully where appropriate.