How Startup Businesses Can Attract and Retain Customers: Expert Tips

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How Startup Businesses Can Attract and Retain Customers: Expert Tips


Attracting customers to your start-up business can be difficult considering that you are new to the market and there are already many such competitive sites. Moreover, Customer Retention is essential for your growth and survival. Customer retention and brand loyalty efforts help businesses and start-ups retain customers from the first point of interaction with your business, extending to a lifelong. Customer engagement and retention are influenced by several aspects, including customer service, responding to feedback, delivering targeted offers, and others. We could also call it creative ways to attract customers for your startup. Every business, including start-ups, relies on its customers. As a result, most companies concentrate their efforts on obtaining new consumers and converting leads through the use of various marketing methods. These methods taught users how to find new customers and increase sales? Or how to attract customers from competitors? There are several benefits of customer retention for businesses, specifically start-ups. Thus, as a business, you need to put in efforts and follow strategies to improve customer retention and engagement.

Importance of Customer Retention and Engagement

Customer Retention is referred to as the capacity of the company to keep its existing customers by building good relationships with them. The company can keep its current customers by cultivating good relationships with them and providing good services. Marketing to an established customer has a 40% higher success rate than selling for someone who’s never purchased from you before. Customer retention is a complicated process since the process of retaining an existing client base necessitates a higher level of active participation and consumer engagement than obtaining new ones. 

With the rise of e-commerce and social media marketing, businesses have realized that increasing client loyalty in this highly competitive market is quintessential. The COVID-19 lockdown, in particular, has shed light on evolving consumer behavior and has revolutionized the purchasing behavior of the customers. The most visible evidence of such revolutionary shifts are the increased usage of social networks and internet websites to purchase products and services rather than visiting offline stores. Consumers no longer buy things only for the sake of buying them or choose them at random. This is due to the fact that consumers do not just purchase a product. They also provide a valuable addition to their lives. They’re only a few clicks away from switching to a different company that meets their requirements.

A customer-oriented company strategy can make a company more responsive and receptive to its customers’ requirements, making it more robust to market competition. Major customer retention advantages can thus assist you in recognizing the industry’s pattern of product and services development and enhancement in order to boost your company’s retention rate. Because more people are going to invest in start-ups these days, entrepreneurs must prioritize customer retention as a top priority. It also improves the Return on Investment (ROI) without causing the organization to lose. Additional revenue creation, improved levels of customer pleasure, and client loyalty are all signs of an increased retention rate. According to a survey, engaged customers are likely to generate 1.7 times more income than non-engaged customers. Employees and engaged customers can generate up to 3.4 times the typical revenue. Loyal consumers can enhance a company’s total revenue compared to one-time customers. They also act as a buffer against bad weather and rising competitive pressures.

Also Read: 10 Proven Ways to Expand Your Online Business in 2023

Benefits of Customer Retention and Engagement

Some of the benefits of customer retention and engagement for the start-ups and businesses are: 

Low Marketing Expenses

Getting new consumers takes a lot of time, effort, and money. Consumers who demonstrate a genuine interest in the product or service you offer and a readiness to buy boost the prospects of converting such customers and generating a transaction by concentrating marketing techniques on current customers. This not only saves money on advertising but also demonstrates the brand’s dedication to rewarding client loyalty.

Sales Boost by Loyal Customers

Loyal consumers increase sales because they have a connection with the business and are more inclined to believe the company and specifically the brand than new customers. An existing client is more inclined to convert or make repetitive purchases with your site because they’ve been with the company for a while and are familiar with the service or product you offer. Furthermore, loyal consumers spread word of mouth more effectively, lowering your customer acquisition costs.

Enhances Effective Communication

Customers engaged and loyal to you are usually simple to approach and are already familiar with your communication methods. This means they’ll be more understanding if the service isn’t up to par or if a fault emerges. It also implies that consumers were more likely to interact with your messages, such as reading emails or giving good product feedback.

Improve Brand Image

Brand Image refers to a customer’s perception of a company’s products and services. A positive brand image aids in the acquisition of new customers, cross-selling and upselling, and the reduction of marketing costs. One of the most beneficial aspects of customer loyalty is that the business gains a greater understanding of who its consumers are and their demands. The data gathered aids in the creation of personalized and targeted campaigns that increase the likelihood of success.

Develop a Strong Relationship with Customers

Developing strong and reliable customer relationships is typically a part of concentrating on client retention, for instance, by demonstrating gratitude through loyalty programs or delivering great customer service in the event of a problem. Customers will appreciate your attentiveness and responsiveness and will get more inclined towards your brand.

Word-of-Mouth Promotion

Customers committed to your brand are more inclined to suggest it to everyone else and promote it favorably. This is effectively free promotion, and because it is organic and has no disguised or minor objective, it could have a much higher impact on prospective buyers. In addition to being free, this sort of promotion can result in more loyal customers because they begin purchases with a favorable impression of your brand.

Tips for Start-Ups for Retaining and Attracting Customers

10 Ways How To Attract More Customers To Your Business

Clear Objective Establishment

Customers frequently have generic demands of the market. On the other hand, businesses find it difficult to meet these expectations; hence, outlining your objectives ahead of time can help your clients better comprehend your offerings. Furthermore, this shall also increase your customers’ confidence in your brand and their faith in your products and services and encourage them to remain loyal to your company in the long run. Consumers may be influenced to purchase from you if an organization’s goals in terms of quantity and quality of service are met.

Direct Response Marketing

Prospective customers are enticed to perform particular, urgent actions through direct response marketing. You can use direct response marketing to lute the customers to join your mailing list or any other contact method, which shall provide you a pathway to contact them through various ways and foster them more towards a purchase. You can also send ebooks or templates in exchange for contact information. Furthermore, ensure that your messaging is geared to address the primary concern areas of your potential customers. Direct response marketing aims to swiftly respond to your potential customer’s needs and illustrate the value your firm offers.

Asking for Referrals

You can use referral programs to retain and attract more potential customers. This is where you can make use of your customers and users. They can act as a medium to share your business with your friends, colleagues, and others. People will trust these referrals cause their friends have already used your services, which guarantees more authenticity. You need to put the trust of customers to good use. Develop a plan for actively seeking recommendations from your delighted clientele. 

Email Marketing

With email automation, you can reach out to customers straight away with customized communications and offer them something in exchange for their time. Customers are notified of deals or promotions, and instructions on how to use a product are shared, as well as industry training. Sending follow-up emails to your customers to ensure that they are satisfied with the service and the purchase is important to understand their feedback. 

Influencer Collaboration

Influencers are essentially those who have amassed a reputation or audience through social networking sites or their extraordinary talents or work. Influencers who share a company’s goals or strategy may create partnerships with it. Influencers can sell and promote your product by suggesting it to their followers,  using it, wearing it, or talking about it with their following. Influencers can help build worth via direct personal experience to influence purchasing if the business products and sales infrastructure are in place. Influencers relevant to the firm’s niche might assist the brand in reaching out to additional customers.

Rewarding Valuable Customers

Giving out free items may not seem like the most sensible small company strategy, particularly if you’re beginning out on a shoestring budget. Customers will almost certainly associate some worth to the awards supplied by your company; thus, incentives or the rewards that you provide are more valuable to them. This link between awards and your firm would boost the business’s reputation and act as an attractive and engaging force for these customers.  This may boost their desire to purchase from your brand in the future and to suggest it to their friends.

Customer Feedback

Customer feedback is a valuable customer retention strategy that can assist a company in determining whether the services of the company are satisfactory or not. Any discrepancy between these can be easily found by actively seeking and reviewing consumer feedback in order to enhance your services and goods. Furthermore, the customer’s feedback can provide an insight into what their thoughts are about your brand and would help you better understand their emotions towards your brand. As a result, you would better understand their expectations and incorporate them into your products and services and improve Customer Service Management.

Make Use of Online Reviews and Ratings

Considering both the B2B and B2C industries, the customer generally follows the online ratings and the reviews for their purchase of items. Therefore, you need to keep track of the services and respond to any complaints to ensure that you have excellent reviews and ratings. In addition, you can encourage your customers to share their experiences and reviews, so your site has a better impression. 

Make Quarterly Strategies

When you have all relevant information and resources organized with you, you can start formulating well-researched quarterly strategies that you can implement to attract potential customers. It is important to understand that 3 months shall provide sufficient time to make progress and track outcomes without overwhelming you with the pressure of achieving those objectives in a short amount of time. Every stage in your strategy should be framed in a way that complements the aims you outlined in step one.

Make Your Affiliate Program

Affiliate programs, like collaborating with influencers, allow your customers to sell for you. An affiliate is a person who is paid for each sale or referral made to a firm via their website, social media platform, or other related channels. In addition, affiliates increase the number of customers who understand the company and its products by getting them to talk about it.

Also Read: Top Business Challenges and How MultiQoS is Solving Them


Customer acquisition and retention should not be viewed as mutually exclusive aspects of the developmental business process. While the former can help the company expand, the latter is required for expansion. In today’s extremely competitive environment, it is difficult to separate your brand from your rivals. The essential drivers in a business are customer retention and customer loyalty. A happy consumer is more likely to recommend your business to others and is more likely to recommend you to them. Customer retention is time-consuming to implement. However, prioritizing it to implement is one of the essential factors. This is because Customer retention has numerous quantitative and qualitative advantages, and it has the potential to increase your company’s long-term profitability and boost your brand’s image among your target audience. Let how much successful your company is or how small you are; customer retention should be a top priority. Make sure to use customer retention strategies like customizing each interaction with clients and providing opportunities for them to submit feedback. You can hire any Mobile App Development Company that can suggest you methods and facilitate the method of customer retention during the mobile application development process. 

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FAQ About How to Get More Customers for My Business

Customer engagement is a procedure that occurs all through the customer’s lifespan, whereas customer happiness is the result of that process.

There are numerous methods for increasing client involvement. Discounts and promotions, as well as gifts, might be offered. Offering incentives, creating a VIP program, organizing client surveys, offering exceptional customer service, and informing customers are methods to attract more customers to your site. This is an excellent opportunity to reconnect with former customers and demonstrate the value you provide. You can organize community events, charity events, seminars, webinars, and zoom meetings.

Client engagement is critical since it may aid in the growth of your business, increase customer loyalty and customer retention and thereby increase income. In addition, keeping an engaged client has a far better return on investment in comparison to attracting new customers.

Customer engagement is a metric used by businesses to assess the quality of a customer’s connection with a brand. Companies strive to boost customer involvement in order to increase customer lifetime value (LTV) and gain more out of customer relationships.

There are several methods to gauge how well a company’s customers are engaged. Consumption, churn rate, referral rate, licence usage, and social media involvement should be your primary focus.

Blogging, publishing on social media, sending messages or emails to communicate, joining a relevant online community, using Search Engine Optimisation, and putting out press releases are all examples of online marketing methods. You need to find the best suitable method that suits your requirements.

Prashant Pujara

Written by Prashant Pujara

Prashant Pujara is the CEO of MultiQoS, a leading software development company, helping global businesses grow with unique and engaging services for their business. With over 15+ years of experience, he is revered for his instrumental vision and sole stewardship in nurturing high-performing business strategies and pioneering future-focused technology trajectories.

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