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3 Customer Retention Mistakes You Might Be Making

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3 Customer retention mistakes you might be making in your Home Service Business

Most business owners invest too much in the value of reaching a broader audience to bring new customers to use their service. Although it’s an excellent way to develop better brand positioning, it shouldn’t be your focus in the long-term.

Any successful business will tell you that maintaining customer conversion rates isn’t the most challenging aspect of your sales funnel. Over time, even your most dedicated customer can lose interest in your service if you’re not capable of keeping their interest. This is why you need to execute online marketing strategies to engage them with your brand.

How to negate the effects of customer attrition

Understandably, the first objective of small- and medium-sized enterprises (SMEs) is to focus on building their customer base. However, having a tunnel vision on this goal will lead to a false sense of growth. Higher revenues in limited periods don’t always translate to long-term success. You might end up making customer retention mistakes that will be worse for your business if you let the new numbers fool you.

Here are three customer retention mistakes you should watch out for:

1. Curating inconsistent customer experience

Most businesses can feel complacent after reaching a certain level of success, which can be a dangerous red flag. Consistent customer experience is necessary to keep your customer with your service. This is even more important for service providers who need to maintain a long-term relationship with their clients.

For example, occupations like electricians and plumbers don’t survive getting a steady influx of new clients. It’s most likely that they develop relationships with commercial and residential clients as regular business partners. A decline in customer experience can lead to mixed reviews on your service and a reluctance to have you back on call.

2. Ignoring your inactive customers

It’s not uncommon for businesses to experience a dry spell, especially if they only offer specialized services for seasonal events. This includes establishments that solely sell holiday décor or cook seasonal feasts. Even if your business is active all-year-round, you will still see a decline in customer activity if you don’t devote efforts to retain them.

Remember that your expenses in customer acquisition aren’t just for a one-time transaction. Your goal should always be for the long-term. Utilize engagement emails, unique incentives, and a rewards system to keep your customers engaged with your service from time to time.

3. Not listening to customer feedback

Businesses nowadays have social media profiles to connect easier with their followers. It’s one reason why marketing by social media leads to high engagement and conversion rates. Besides being an avenue for digital marketing, it’s also an excellent way to gain customer feedback. Although it may be a tough challenge at first, you must read through your service’s positive and negative reviews.

It can be more harmful for your brand if you focus on positive comments. You should look at which criticisms are valid and how you can improve your products and services based on them. Doing so will make your customers feel like you’re responding to their complaints and will empower them to come back to your service.


Improving your customer attrition rate will double or even triple your business’ growth even without beefing up your customer acquisition budget. The more customers stick around to use your service, the higher their customer lifetime value will increase. This allows you to focus on product refinement, IT upgrades, and other features to improve your marketability and service.

Part of maintaining your customer’s interest in your service is by having a compelling marketing strategy. If you need the best digital marketing company in Wisconsin , our team at Relentless Digital can solve your marketing needs. Contact us today and we’ll improve your customer attrition rates!