Customer Retention: How to Improve Customer Retention Rate with Videos

Hari Krishnan - October 6, 2022 - Leave your thoughts.

In our quest to acquire new customers, we often sideline the importance of customer retention. We take our current customers for granted and do not put the effort into solid customer retention strategies. 

Let’s look more at customer retention and why it is more important than customer acquisition. 

As the term suggests, customer retention is the rate at which a company manages to keep its customer throughout a predefined time. 

Here’s how you can calculate the customer retention rate:

Customer retention rate(CRR) = ((Total number of customers at the end-new customers)/customers at the start) X 100

Now that we have learned about customer retention rate and calculating it, let’s look at its importance. 

Customer retention is more important than customer acquisition by a huge margin.

To substantiate our claim, look at a study by a reputed website,

1. The cost of acquiring a new customer is five times higher than retaining one. 

2. Increasing the customer retention rate by 5% can increase profits by 60%

3. There is a 65% chance that you will be able to sell to a customer while you only have a 15% chance when trying to sell something to a new customer. 

From the aforementioned statistics, we can see that customer retention has the following benefits:

1. Increases profits
2. Reduces the customer acquisition cost(CAC)
3. Reduces churn rate
4. Increases customer loyalty
5. It is a good indicator of your customer satisfaction. 

Now that we are armoured with the knowledge of customer retention, how to calculate it, its importance, and its benefits. But how to do it? Well, like many other solutions in marketing, videos come to our rescue again.

We have already evangelized about how Video First Marketing is the future. Similarly, customer retention should also be an integral part of your video marketing strategy.  

1. Brand Awareness Videos: Keep increasing your brand’s goodwill through videos. As your brand’s awareness and value increase, your customer’s affinity towards your brand will increase too. It can be anything from how your brand has gone from strength to strength or how your brand has successfully solved a particular problem. 

2. Product Explainer Videos: You can launch a new product and give exclusive access to your customers for the first look at the product. Your customer will feel valued by this gesture. You can even create product explainer videos whenever you have solved your customers’ pain points.  Propagating the solution in a product video will assure the customers that you are making the time and effort to address their problems. 

3. Tutorial Videos: Your customers will likely find an issue with how to go about using your product. Instead of having them go through the hassle of getting in touch with your customer support. Ensure that you have made a set of tutorial videos that will make your customers solve their problems without wasting time. 

4. Customer Testimonials: To improve customer loyalty and retention, you can create videos of customer testimonials. To foster loyalty toward your product, you need to create empathy in your customers’ hearts first. The best way to do this is by having them watch other customers speak about their positive experiences. You create an atmosphere of a tight-knit community with customer testimonials. 

5. Social Responsibility Videos: 70% of customers want to know what their brand is doing to address social and environmental issues. It is a human tendency to have the propensity of being associated with a good deed. Make a wholesome video on how you have planted 100,000 trees across the country if you have actually planted them of course. If your customers remember you for the right reasons, it helps you in retaining them. As simple as that.
   

Bettering your customer retention videos will consolidate your video marketing strategy. The two ways to do that are the following:

We have already explored why personalized videos are such an effective marketing tool. They make your customer feel connected and at home. It is bound to cultivate loyalty toward your brand. If you have already made your videos and if you think that you have missed the bus of personalized videos, do not fret over it as we have an easy solution for it. Just edit and add a personalized introduction to your videos. 

Making your videos interactive by adding interactive hotspots to them is going to make your videos more engaging. Hotspots like surveys, polls, turnstiles, quizzes, etc. provide you with the opportunity to make your videos gameable as well as help you collect feedback. It improves your videos’ recall value and helps you improve your customer retention rate.

Just because they are your customers does not mean they are thinking about you 24/7. They probably have a hectic life of their own. This is where customizing and branding your video player perform such an integral role in forming a strong impression in your customers’ heads. If your customers remember you, there are higher chances of you retaining them. 

Roundup
Customer retention rate is cheaper and more fruitful than acquiring a new consumer. It makes complete sense to focus on your customer retention strategy. However, with a lot of competition grappling for your customer's attention, it can be tough to retain them. Customer retention should be a part of your video marketing strategy.

You should start working with a video hosting platform to make your videos interactive and customized.