Why is customer retention the "golden key" for sustainable growth?
In modern business, many brands focus strongly on attracting new customers, but forget the group of old customers - those who have the potential to bring 80% of revenue. According to statistics, retaining old customers is 5 times more cost effective than finding new customers. Furthermore, the conversion rate from loyal customers can reach 60 - 70%, while new customers are only at 5 - 20%.
👉 That means: if you want stable growth in the second half of 2025, businesses not only invest in attracting new customers, but need to build a long-term customer retention strategy term, sustainable.
What is customer retention?
This is the process by which a business maintains the attachment of current customers to the product or service, while preventing the possibility of them leaving for competitors. Retention is not just about promotions, but also the art of creating after-sales experiences that exceed expectations.
Customer Retention Rate (CRR) formula:
CRR=CE−CNCS×100CRR = \frac{CE - CN}{CS} \times 100CRR=CSCE−CN×100
In that:
CE (Customers at End): Number of customers at the end of the period.
CN (New Customers): New customers in the period.
CS (Customers at Start): Number of customers at the beginning of the period.
👉 Example: If you started quarter 2 with 500 customers, there are more 100 new customers, and at the end of the period there are 520 active customers left:
CRR=520−100500×100=84%CRR = \frac{520 - 100}{500} \times 100 = 84\%CRR=500520−100×100=84%
This is a reasonable indicator thought, shows that businesses retain old customers well.
14 Effective Customer Retention Strategies for the Second Half of 2025
1. Building a loyalty program (Loyalty Program)
Mechanism for accumulating points & redeeming rewards: Helps customers come back regularly.
VIP benefits: Exclusive offers, private events, early access to new products.
Case study: Starbucks Rewards has turned customers into “loyal fans” when 40% Transactions come from members of the program.
In Vietnam, Tan Phat Digital suggests businesses should integrate loyalty into CRM and email marketing for personalization, instead of just giving away discrete vouchers.
2. Excellent customer service
Customers leave not because of price, but because of poor service.
Zendesk 2022: 81% of consumers consider customer service as a factor in deciding to repurchase.
Practical application: VinFast invests in a 24/7 call center system, handling Quick complaints, helping to increase brand trust.
3. Deploying Customer Success Management (CSM)
Difference with Customer Service: Customer Service reacts when there is a problem, while CSM proactively accompanies to help customers achieve their goals.
Practical example: Salesforce has a dedicated CSM support team, helping the service renewal rate reach 90%.
Vietnamese Enterprise This model can be learned and applied through a CRM system combined with AI to predict churn risk.
4. Increase engagement with subscribers
Reactivation email: “We miss you!” – Michael Kors' campaign helps increase email open rate by 21%.
Strategy: Send personal recommendations and exclusive offers instead of spam.
Application: Vietnamese e-commerce can use automation to remind customers to return to abandoned shopping carts.
5. Collect & act on customer feedback
Case study: Happy Socks offers -25% voucher in exchange for feedback. Results: 32% of customers returned to purchase.
Lesson: Not only collect, but respond with clear actions so customers see the value of their opinions.
6. Personalize email content
Insert customer names, product suggestions based on purchase history.
For example: Lazada sends “product suggestions you viewed yesterday”.
Benefits: Click-through rate increases 3 times compared to generic emails.
7. Design the perfect onboarding experience
Discount on your first order.
Video instructions on how to use the product.
Case study: Canva has a step-by-step onboarding process, making it easy for newbies to use → retention rate reaches 85%.
8. Increase brand trust
Display real reviews on website, fanpage.
Application: Tiki encourages product reviews with vouchers.
Result: Trust increases, repurchase rate is 25% higher.
9. Encourage customers to create accounts
Benefits: Personalize experience → send birthday offers, cart reminders.
For example: Amazon always prompts “Personal suggestions for you” → effective retention.
10. Deploy Subscription Model
Application: Netflix, Spotify retain customers with recurring subscriptions.
In Vietnam: Many coffee and cosmetic brands can offer “monthly delivery” packages.
Benefits: Turn purchasing into a habit.
11. Convey brand values & ideals
For example: Cocoon Vietnam attracts customers because of its "vegan cosmetics" philosophy.
YouGov 2024: 69% of customers want to know the origin of products, 67% want brands to act for the environment.
12. Create an entertainment experience
Case study: Durex uses humorous content on social media, creating a loyal fan community.
Lesson: Brands need to combine entertainment + product value to become relatable.
13. Don't promise too much
Mistake: Advertise "flowery" but the product does not meet expectations.
Correct strategy: Underpromise & Overdeliver - promise less, deliver more.
For example: Shopee was criticized for advertising "delivery in 2 hours" but not guaranteed. Lesson: reputation is more important than promises.
14. Proactively reconnect with old customers
Personalized email: “We want to hear why you left.”
Application: Vietnamese e-commerce platforms use “welcome back” discount codes to reactivate customers.
Value: Customer leaving data helps optimize services. service.
Case Study: Tan Phat Digital and customer retention strategy
Tan Phat Digital – a digital marketing agency – applies the strategy of personalized CRM + loyalty program for SME customers:
Automatic email Active: Remind service schedules, report periodically.
CSM proactively: Support customers to optimize advertising, reduce costs by 20%.
Results: Customer retention rate reaches 87% in 2024, 20% higher than the industry average.
👉 This is proof that combined technology + people + data is a sustainable retention formula.
Retaining customers not only helps save marketing costs, but also creates a long-term development foundation. The above 14 strategies need to be integrated consistently into the entire customer journey, from onboarding to care and reactivation.
In the second half of 2025, when the market is fiercely competitive, brands that know how to take care of old customers will have an outstanding advantage for sustainable growth.
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