How To Increase Customer Retention With Email, Sms and Push Communication?

MessageFlow Team
3 min read
September 25, 2023

Today's consumers buy and they disappear. Some of them come back, but some will never appear in your statistics again. See what determines Customer Retention and how to effectively increase it using SMS and Push messages.

What is customer retention (CRR)?

The Customer Retention Rate (CRR) is a percentage metric that measures customer loyalty, or basically the ability of a business to keep them for more than one purchase. In addition to identifying the number of loyal customers, the customer retention rate can reflect the level of customer satisfaction over time, but it can also help to identify those process elements that cause the greatest churn of buyers.

It's clear that a 100% ratio is practically impossible to achieve, but what kind of CRR should we strive for? It's best to take the industry average for inspiration:

Average CRR and business:

  • Retail: 63%

  • Banking: 75%

  • Telecommunications: 78%

  • IT: 81%

  • Insurance: 83%

  • Services: 84%

  • Media: 84%

A special formula was created to calculate the customer retention rate:

CRR = (E-N) / S x 100
  • E stands for customers at the end of the selected period

  • N is the number of clients acquired during this period

  • S is the number of clients at the beginning of this period

So if you have 1000 clients at the end of the selected period, at the beginning there are 800, and in the meantime you have 400 clients, the action will be as follows:

(1000-400)/800 x 100 = 600/800 x 100 = 75%

Why is the customer retention rate so important?

Companies that don’t pay much attention to customer retention and focus solely on acquiring new ones can lose a lot. Not only because the cost of customer retention is much lower than the cost of acquisition, but also because satisfied, returning customers spend significantly more.

Loyal customers spend an average of 67 percent more and make purchases 90% more often than new customers.

(SixAds & Squarespace)

Retaining customers and turning them into repeat customers is therefore as important, if not more important, as acquiring new ones. It’s also worth remembering that a loyal customer will most likely recommend your brand to their friends - the investment of time and resources in building a long-term relationship with them is an investment in the development of your business.

How mobile Push notifications, SMS and Email help keep customers?

According to GWI data, a modern consumer spends an average of 7 hours a day on the Internet.

During this time, they frequently visit social media, check emails and browse various websites - often from a smartphone. By seamlessly switching between different media, the customer demands the same from the brands they interact with.

The availability of many communication channels has stopped customers from sticking to one selected channel of communication with the brand and purchasing in one specific way. According to McKinsey & Company, up to 60-70% of consumers admit that they buy through various channels. They expect this form of brands’ action, and in return offer them their valuable loyalty - which can be easily converted into profit.

Companies that pursue a solid multi-channel customer experience achieve a customer retention rate of 89 percent.

(Think With Google)

Why is Customer Retention falling?

It all comes down to the Customer Experience. If at some stage of the customer's journey - from purchasing a product or service, to waiting for an order to be fulfilled, to using the service, to the way the brand communicates with them after purchase - something goes wrong, it will most likely be their last purchase.

Customer requirements are enormous, but keeping them for longer is not impossible.

How to effectively increase Customer Retention?

The best way to minimize the risk of losing customers is to build a coherent multi-channel communication strategy (including SMS, Email and Mobile Push) and make sure that each stage of the customer journey is transparent and runs smoothly.

Modern customers expect the brand to flexibly adapt to their lifestyle, but they also like to feel special, thanks to personalized communication with their favorite brands. If you combine it with a smooth customer experience, this client will definitely stay with you for longer.

How Mobile Push notifications effectively increase Customer Retention?

Mobile Push notifications are one of the most effective ways to engage the customer and increase the customer retention rate. It can be used for such purposes as:

• Saving abandoned carts

• Distributing discount codes

• Encouraging return to the application or website

• Informing about new products in the offer, occasions, sales, etc.

welcome Mobile Push notifications

The role of an SMS messages in Customer Retention

SMS messages are an effective and liked channel of communication with the brand by today's customers. However, what is even more important:

Personalized, skilfully structured SMS messages, sent with the appropriate frequency can significantly increase the level of sales - at least that's what 96 percent of marketers say.

Attentive Mobile

discount SMS communication

Summary: Customer retention

Industry trends and customer preference statistics are transparent - in order to keep the customer with the brand, the entire customer experience (including communication) must be adapted to their personal needs. To achieve this, it’s necessary to automate communication, which will quickly bring results in the form of a growing base of loyal customers and growing profits of the company. According to Harvard Business Review data, a 5 percent reduction in customer churn can improve business profitability by up to 95 percent - there is something to fight for.

If you have any further questions or would like to delve into the specific details of your campaign, don't hesitate to get in touch with us at Our seasoned team is in control of the technology and is always prepared to offer tips and guidance to assist you in achieving the optimal results.

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