Every retailer wants loyal customers, but customer retention in retail is more challenging than ever. Traditional loyalty programs, discounts, and marketing campaigns may not be delivering the results retailers expect. So, what makes customers return? And how can you increase shopper retention and boost revenue?
In this exclusive masterclass, Gareth Johns, Chief Customer Officer at TruRating, shares groundbreaking insights on what truly influences retail customer retention, how real-time feedback transforms decision-making, and why investing in staff engagement is the key to long-term success.
Watch ‘Mastering customer retention – how to turn first-time shoppers into lifelong fans’
Learn how to increase customer retention in retail
Increasing customer retention in retail isn’t about guesswork; it’s about understanding what actually drives repeat business. Here’s what we covered in this masterclass:
1. Loyalty is about experience, not just rewards
Many businesses assume that points programs and discounts are the key to keeping customers engaged. However, data shows that what truly matters is the overall customer experience, particularly their interaction with staff.
2. Real-time feedback changes everything
Traditional post-purchase surveys get low response rates and often miss critical insights. TruRating’s patented approach captures feedback at the moment of payment, achieving response rates over 80% and providing businesses with more representative, actionable data.
3. Staff engagement is the #1 driver of customer retention
Across all retail sectors, the single most influential factor in whether a customer returns is their interaction with store staff. Friendly, knowledgeable, and authentic engagement has a more lasting impact than price or promotions.
4. Why traditional loyalty programs fall short
While loyalty programs are great for gathering customer data, they rarely change shopping behavior. Instead of relying solely on promotions and email campaigns, retailers should focus on enhancing the customer experience and fostering genuine relationships.
5. Navigating economic challenges.
With higher prices and tighter budgets, customers are being more selective about where they spend their money. This makes it even more crucial for retailers to be in their consideration set by offering superior service and memorable experiences
6. Why this matters
Retailers who focus on customer retention in retail see higher profits and stronger brand loyalty. Our data shows that retailers who track and improve customer experience at checkout see increased retention rates and bigger basket sizes within just 90 days.
What is a good customer retention rate for a retailer?
A strong customer retention rate in retail varies by industry, but in general:
- The average retail customer retention rate is 63%
- Top-performing retailers can achieve 70%+ retention by focusing on their CX strategy
- A 5% increase in customer retention can boost profits by 25%–95%
- Loyal customers are five times more likely to purchase again
By improving the customer experience through data analysis, you can increase retail customer retention, drive loyalty, and boost revenue.
Meet your host, Gareth Johns
Gareth Johns is an internationally experienced product and data development leader with 20+ years of expertise in using big data and technology to drive business growth for major retailers. He played a key role in scaling dunnhumby, a global leader in customer data science, from a 30-person startup to an international powerhouse in marketing analytics and customer insights for Tier 1 retailers. After leading strategic initiatives across the US and Europe, he went on to Starcount before joining the TruRating team.
Gareth is passionate about transforming the way retailers collect and use customer feedback. At TruRating, he’s helping businesses access real-time, transaction-tied consumer data at an unprecedented scale; revolutionizing how retailers measure and improve customer experience.
How TruRating can help your shopper retention strategy
TruRating is revolutionizing customer feedback with real-time, at-checkout insights that help businesses make data-backed decisions. By capturing feedback from over 80% of customers, you can gain access to accurate, actionable insights that drive customer satisfaction and business growth.
With a focus on making feedback meaningful, we help brands measure and improve customer experience in ways that traditional methods simply cannot.
Discover how TruRating can improve your retail retention strategy. Explore our customer feedback platform or book a demo today.
