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7 customer retention strategies in 2025
The average customer retention rate across all industries is 75%, according to Exploding Topics. Media is tied for the highest spot, at 84%; hospitality, travel, and restaurants occupies the lowest, at 55%.
It makes sense why there’s a 29% spread between these industries. People can consume their favorite media from anywhere at any time right from their smartphone. But no one can grab their favorite restaurant, put it in their pocket, and take it with them.
With that perspective in mind, a 55% retention rate is much more of an achievement than it may appear. What’s more, recent customer research shows that industry players (such as restaurants, pharmacies, and grocery stores) can implement specific strategies to boost retention rates.
When retailers institute on-demand delivery services, for example, retention and loyalty increase. Most consumers say that a positive delivery experience makes them more likely to order again (94%) and likely to recommend a retailer to others (92%).
This article will explore 7 strategies that will help you boost customer retention so that your business stays top of mind—even when customers can’t carry it with them.
What customer retention means, and why it matters
Customer retention is when a business maintains long-term customer relationships by delivering consistent value and creating positive experiences.
Fostering customer retention matters because your customers are the lifeblood of your business. Their loyalty keeps the lights on, grows your profits, and helps you scale.
Having a steady stream of regular customers visiting your business can also help you save on customer acquisition costs.
Instead of attracting new customers (which is something you want to do) by relying solely on your advertising budget, let loyal customers do some of the work for you. Statistics show that 90% of customers will likely recommend brands they trust to others.
Key factors that influence retention
We know customer retention is key to success, but what influences retention? What makes customers stick around and—better yet—tell their friends and family about your business? Below are some reasons to consider.
Customer experience
Three-quarters of people (73%) say customer experience is an important part of their purchasing decisions. And today’s customers want positive experiences at every touchpoint. To reach this high level of customer experience, start by hiring a friendly staff, prioritizing convenience with online ordering, and rewarding loyalty with relevant in-app promotions.
Evolving consumer behaviors
Today’s customers no longer always dine in, go to the grocery store in person, or visit a drive-through to pick up a prescription. Instead, many rely on delivery. And 75% of retail customers say they expect express delivery as an option. You can improve retention rates and stand out from competitors by offering online ordering and express delivery directly from your website.
Brand values
A company’s values play a significant role in shaping customer loyalty. In fact, 82% of consumers prefer to support brands whose values are similar to theirs. Whether the businesses support sustainability, social responsibility, or local communities, those that authentically integrate their values into their operations can grow deeper connections with customers.
7 strategies for customer retention
If your retention rates are on the lower side, explore the strategies below for a potential boost. Try these ideas to help strengthen customer loyalty and drive growth.
Offer omnichannel support
You’ve nailed the in-store experience—your staff is friendly, the store is well stocked, and checkout is a breeze. But to truly meet the needs of today’s consumers, you need to cater to their digital expectations as well. Make ordering from your store as convenient as possible with curbside pickup, real-time order tracking, and delivery through third-party apps like Uber Eats. And don’t forget to create (or optimize) online delivery from your website as well. By extending your reach through multiple channels, you meet your customers where they are—online or in-store—boosting retention and customer satisfaction.
Manage customer support quickly
Resolving customer issues promptly is essential to keeping your customers happy. And when customers are happy, they’re more likely to return to your store.
Whether your customers are facing order issues, delivery delays, or product inquiries, equip your support team with the resources they need to handle requests efficiently.
Start by optimizing your self-service customer support options like FAQ on your website or in-app help. This can help your customers resolve their concerns before contacting a support team member. If your FAQ or in-app help doesn’t resolve the problem, make sure a real person is available to help by chat, phone, or email.
Personalize interactions
When you’re working with a customer face to face, learning what they want is easy. A friendly employee can ask questions in real time, offer recommendations, and make adjustments on the fly.
Online, businesses can achieve a similar level of personalization by using data tracking and analytics tools. These tools enable companies to analyze customer behaviors, preferences, and past interactions, allowing them to deliver tailored recommendations and create more engaging online experiences.
Build strong relationships
Turning casual customers into loyal fans starts with meaningful connections. Encourage your staff to engage with customers on a personal level, whether it’s remembering a regular’s favorite dish, having a meaningful conversation, or offering custom recommendations based on what they’re telling you.
You can build relationships online through personalized email marketing, exclusive offers for repeat customers, and loyalty programs that reward frequent purchases.
Implement loyalty and rewards programs
Speaking of loyalty programs, do you have one yet? If not, now is a great time to start. Statistics show that customers love loyalty programs, and they’re a solid building block of customer retention.
The 2024 Bond Loyalty Report found the following:
- 85% of customers say loyalty programs make them want to continue doing business with that retailer
- 79% say they’re more willing to recommend a brand with a good loyalty program
- 73% will modify the amount they spend to maximize their loyalty benefits
Building a loyalty program can be as simple as starting with a punch card or as robust as creating a rewards app.
Use feedback for continuous improvement
You can improve customer retention numbers in several ways, but the best way to learn what resonates with your customers is to ask them.
Here are some methods for capturing feedback from your customers:
- Surveys: You can send short, targeted surveys by email or app to gather insights on customers’ satisfaction after purchases.
- In-store or online feedback forms: Consider making it easier for customers to share their thoughts by placing feedback forms at checkout or in their account section online.
- Social media polls and interactions: Engaging your audience through social media platforms with interactive polls or direct questions can help capture opinions.
- Customer interviews: Conducting one-on-one interviews with loyal customers can help you gain deeper insights into their experiences.
- Reviews and ratings: You may encourage customers to leave reviews on your website or third-party platforms like Google or Yelp to gather open-ended feedback.
- Loyalty program feedback: Loyalty programs can help you request input from repeat customers, offering rewards in exchange.
- Customer support interactions: Analyzing support tickets or live chat logs can identify recurring issues or opportunities for improvement.
Once you’ve captured the feedback, review it to help identify patterns and discover what changes you can make to improve.
Enhance the delivery experience through your own channels
One of the most powerful innovations driving customer loyalty and retention in this industry is the significant advancement in delivery services.
Customers no longer have to wait for quality delivery; they can get nearly anything they want whenever they want. They’ve become so used to fast and reliable delivery that it’s now an expectation.
In fact, 75% of consumers say they expect express delivery (meaning within 2 hours) as an option, and 72% will more likely continue to order from companies that provide express delivery. Moreover, 44% of consumers say they stopped patronizing a business because it didn’t offer this type of delivery.
Here’s the good news: express delivery is an option you can offer on your own channels. The best part? You don’t have to do the heavy lifting. With platforms like Uber Direct, you can white-label your delivery services, which means customers can place orders on your website and Uber Direct will take care of the delivery.
Measuring the impact of customer retention strategies
How do you know whether the changes you’re making are affecting your customer retention numbers?
You can measure customer satisfaction levels with the following methods:
- Track key metrics: This involves monitoring repeat purchase rates, order frequency, and average order value to assess retention. Grocery stores, for instance, can track reorders of common items, while pharmacies can monitor prescription refills.
- Elicit customer feedback: You can send out surveys, ask for reviews (and read them), or send in-app prompts to understand customer satisfaction and areas needing improvement.
- Analyze customer behavior: Identifying patterns, like peak purchase times, average order value, and preferred products, can help you create custom promotions, optimize your inventory, or adjust delivery methods to enhance the customer experience.
- Benchmark success: Comparing your retention performance against industry standards can help provide a clear measure of progress and uncover opportunities for growth.
Refine your customer retention strategy with Uber Direct
Customer retention is the subject of thousands of reports. A quick search on DeepDyve yields more than 7,000 results on the topic.
And it’s no wonder: loyal customers are your business’s bread and butter. Uncovering the secrets to keeping them happy can help you encourage repeat business and foster long-term relationships.
With Uber Direct, you can conveniently integrate delivery into your own channels, helping you meet customer expectations while building loyalty. Get started today.
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