How AI transforms sales prospecting: the definitive guide

Customer retention is no longer an option; it's a business imperative. Retaining existing customers is far more efficient and profitable than acquiring new ones. Yet, B2B sales teams often struggle to invest in strategies that retain customers and prevent churn.

A Gartner survey of 243 CSOs and senior sales leaders found that 73% are prioritizing growth from existing customers, with 57% ranking account retention and growth as a top three priority heading into 2026.

Consider this guide as your jumping-off point to building a loyal customer base, unlocking the full potential of your existing clients, and driving sustainable growth. We’ll share practical tips, tactical examples, and the essential metrics to help sales and marketing work together to build a strong customer retention plan.

What is customer retention?

Customer retention in B2B sales refers to the strategies and practices businesses use to maintain long-term relationships with their existing clients. Retaining customers is often more cost-effective than acquiring new ones and leads to more predictable revenue growth over time. 

To improve customer retention, focus on building a strong experience from initial onboarding to regular touchpoints throughout the customer lifecycle to mitigate churn risks and promote upselling or cross-selling opportunities.

Why is customer retention important?

Customer retention is important because a strong strategy helps reduce the cost of growth by turning customers into advocates and securing renewal and expansion opportunities predictably.

Lower customer acquisition costs

Acquiring new customers is five to seven times more expensive than retaining existing ones, according to research from Bain & Company featured in Harvard Business Review. The same research found that increasing customer retention by just 5% can boost profits by 25% to 95%. By focusing on their customer retention plan, businesses can budget more resources to enhance their product or service and improve their reputation.

More predictable revenue 

A retained customer is more likely to increase their spending over time through upsells, cross-sells, and contract renewals. This predictable revenue stream provides a stable foundation for business growth and reduces teams’ reliance on new customer acquisition.

Unified customer experience

A strong retention strategy fosters a deep understanding of customer needs and preferences. This knowledge allows businesses to deliver consistent and personalized experiences across all touchpoints, building trust and loyalty. A unified customer experience improves satisfaction, reduces churncustomer needs, and strengthens customer advocacy.

How to calculate your customer retention rate (CRR)

To calculate customer retention rate, first determine the net customer loss by subtracting new customers from ending customers. Then, divide this net loss by the starting number of customers to find the proportion of retained customers. Finally, multiply this proportion by 100 to convert it into a percentage, representing your customer retention rate.

Say a company has 100 customers at the start of the period (S), ends the period with 100 customers (E), and adds ten customers over the period (N). The organization has a customer retention rate of 90 percent: [(100-10)/100]*100 = 90%.

For example, if you want to measure your retention rate for the previous quarter, you’d follow these steps:

1. Start with the number of customers at the end of the period (E): If you’re measuring retention for the quarter, E is the number of customers you have at the quarter end.
2. Subtract the number of new customers gained within the period (N): Remember, you don’t want new customers throwing off your data, so subtract all customers you acquired in the past year from E.
3. Divide the result by the number of customers at the beginning of the period (S): In this case, S would be the number of customers on the first day of the last quarter.
4. Multiply by 100: The result is a percentage. 

Key metrics for customer retention 

Net revenue retention

Net revenue retention (NRR) measures the percentage of recurring revenue retained from existing customers over a specific period, taking into account upgrades, downgrades, and cancellations. A high NRR indicates strong customer loyalty, your sales team’s ability to upsell, and the value your product continues to deliver.

Customer churn rate

Customer churn rate represents the percentage of customers who stop using your product or service within a given time frame. A high churn rate often signals underlying issues that need to be addressed in both the long and short term. 

Customer lifetime value

Customer lifetime value (CLV) estimates the total revenue you can anticipate from a customer throughout your relationship. Consider it a direct reflection of your efforts to maintain long-term customer satisfaction and loyalty.

Net promoter score

Net Promoter Score (NPS) is a snapshot of your overall customer experience. Based on customer survey data, NPS assesses the likelihood of your customers recommending your product or service to others on a scale of one to ten. Customers are classified into one of three categories based on their ratings.

• Promoters (9 or 10) are typically loyal and enthusiastic customers.
• Passives (7 or 8) are satisfied with your service but not happy enough to be considered promoters.
• Detractors (0 to 6) are unhappy customers who are unlikely to buy from you again, and may even discourage others from buying from you.

Adoption, usage, and consumption metrics

Adoption, usage, and consumption metrics measure how customers interact with your product. Depending on the nature of your business, this can include the number of active users, frequency of use, or the extent to which key features are used. For example, for some products, success is determined by the number of users, while for others, it's about how intensively the product is used. These metrics help identify engagement levels and where to focus to drive meaningful improvement.

23 Proven customer retention strategies for 2026

In this section, we'll explore 23 effective customer retention strategies, including marketing tactics and client retention ideas. Discover practical examples and proven techniques to enhance your customer retention programs, boost satisfaction, and ensure long-term loyalty. 

Whether you're looking to improve your retention management or implement new retention marketing strategies, these insights will guide you in keeping your customers engaged and committed.

1. Create a strong onboarding experience

First impressions matter, and a smooth onboarding process sets the tone for your entire customer relationship. Gartner research shows that a whopping three in five software buyers have recently experienced regret after a software purchase. Issues like hidden costs, slow implementation, and mismanaged expectations were the most commonly shared complaints among respondents. Nearly a quarter (24%) of regretful buyers canceled their contract, and a third (33%) replaced their software.

To avoid starting off on the wrong foot, invest in a well-designed onboarding program that guides customers seamlessly from purchase to value realization through personalized training, dedicated support resources, and clear communication.

2.  Identify warning signs of churn and contraction 

Proactively identifying warning signs of churn and contraction in high-risk accounts can help you take preventive measures to retain customers. According to Gartner, software buyers report higher rates of regret when they:

• Spend too much time evaluating the purchase
• Are in an accelerated growth phase
• Are in the finance or IT industries
• Have been in business less than five years
• Have a purchase team from a single non-IT department
• Use a sole decision maker for the purchase
• Are based in India, the UK, or Australia
• Fail to use product comparison sites
• Have between 250 and 999 employees

Notably, four in five buyers (80%) who that end up experiencing regret go into the purchase process very or completely confident. This high level of initial confidence often obscures potential problems. But, by recognizing these risk factors, you can take steps to mitigate regret. 

Monitor customer engagement and satisfaction, particularly for those fitting these profiles. For example, if a new customer from the finance industry with a single decision-maker expresses high confidence, ensure they receive extra support and frequent check-ins to address any hidden concerns. Proactively addressing these warning signs can help prevent buyer regret and reduce churn, ensuring a more satisfied and loyal customer base.

3. Launch save campaigns for at-risk customers

Don't wait for customers to churn. Proactively identify at-risk accounts and monitor engagement metrics. Reach out with personalized offers, address concerns openly, and demonstrate your commitment to their success. For example, if a customer’s usage has declined, schedule a call to understand their challenges and offer tailored solutions or incentives to re-engage them. 

For example, if a customer's usage has declined, schedule a call to understand their challenges and offer tailored solutions or incentives to re-engage them. For more tactical approaches, see our guide on how to reduce customer churn and capture low-hanging revenue.

4. Personalize customer interactions

A one-size-fits-all approach just doesn't cut it in today’s selling landscape. Customers crave personalized interactions from consultative sellers that show they understand their unique needs and challenges.

To show your customers you truly understand them, leverage customer data to personalize the way you communicate and make recommendations specific to them. Address them by name, tailor content to their specific industry or use case, and offer targeted support options.

5. Use data to deliver a better customer experience 

Understanding your customers starts with their data. Use data insights to tailor interactions based on customer behavior, preferences, and needs.

Within Outreach, our Conversion Intelligence Insights tracks custom topics, including any mentions of competitors, demos, and pricing. Sales managers can then see how often those topics are coming up in conversations across their team or with specific reps and use the insights from Kaia to coach their reps. 

Regardless of the software your team uses, you can also leverage this data to personalize customer communications, recommend relevant products, and anticipate their needs.

For instance, if data shows that a customer has mentioned specific competitors' features or their pain points with your product, use that feedback in your follow-up conversations and bring those deal insights back to your team for long-term strategic improvements. 

Learn how Outreach applies these data-driven approaches in practice in our guide on using customer data to drive retention and growth.

6. Dig into data gaps

Not all customer engagement data is easily visible. To unlock opportunities within your existing customer base, the business needs to identify and align on the metrics that indicate if a customer is effectively using (or not using) their solution. 

Regularly monitor customer activity and usage data to identify any drop-offs or lack of engagement. Then, reach out proactively to understand the reasons and offer support. 

For instance, if a customer has not logged into your platform for an extended period, send a check-in email with helpful resources or schedule a call to discuss their experience. This proactive approach can re-engage customers and prevent churn.

7. Frequently ask for feedback (and incorporate it)

Everyone has room for growth. Regular feedback is a great way to understand your customers' evolving needs and improve your product offering. Implement multiple channels for collecting feedback, like digital surveys, monthly or quarterly check-ins, or a dedicated customer advisory board, to get feedback on how your customers’ behaviors or attitudes towards your product.  

It’s important to act on this feedback promptly to show customers that their opinions matter. For example, if multiple customers suggest a new feature, prioritize its development, inform them about the progress, and thank them when it’s launched.  

8. Resolve issues quickly

Your customers want to feel heard and helped quickly. Consider your organization’s support system: Does it provide real-time assistance? Can your customers reach you via chat, phone, or email? 

Empower your support team with the training and resources needed to swiftly resolve customer issues. Speed matters: customers expect near-immediate responses, and brands that respond quickly see significantly higher satisfaction. 

Consider implementing service level agreements (SLAs) that prioritize response times based on issue severity, and for high-value accounts, offer dedicated support channels or priority queuing. For instance, addressing a critical bug immediately can transform a frustrating experience into a positive interaction and strengthen customer loyalty.

9. Offer direct and empathetic customer service 

Empathy matters, even in business. Train your support team to listen actively and address customer concerns with understanding and care. Personalize responses to show genuine interest in their issues. For example, if a customer is experiencing difficulty with your product, acknowledge their frustration, apologize for the inconvenience, and provide a clear and empathetic solution. 

10. Reward loyalty

Loyalty programs should go beyond simple discounts. Start by tailoring rewards to what your customers value most, whether it's cost savings, premium features, or exclusive access. This customization minimizes the risk of buyer regret. Consider implementing a tiered system to encourage more spending and greater commitment. Higher tiers can offer additional benefits like dedicated support and invite-only events, making it less likely for customers to look elsewhere.

11. Build a strong customer community

Creating a community around your brand can foster customer loyalty and engagement. Explore what it would take to launch or sponsor online forums, social media groups, or local events where customers can connect, share experiences, and provide feedback. 

For example, take a page out of the Outreach marketing playbook and create opportunities for you your customers to engage live in webinars or Q&A sessions with industry experts and product specialists. These initiatives not only position your business as a thought leader but also cultivate a strong sense of belonging.

12. Surprise and delight customers

Unexpected gestures can create memorable experiences and enhance customer loyalty. Find creative ways to surprise and delight your customers, such as sending personalized gifts, handwritten notes, or special offers. These small acts can leave a lasting impression. 

For example, if a customer achieves a significant milestone using your product, celebrate their success with a congrats message and a small token of appreciation. Such gestures show that you value their success and are invested in their journey.

13. Include customers in product roadmap discussions

Involving customers in product development can deepen their engagement and loyalty. Many customers know what it feels like to ask for a solution, but not feel heard. Let them know your strategy for the future, ask them for feedback and incorporate it where possible. Include your customers in product discussions, and you show you value their feedback – and it gives them a sense of ownership around the product.

14. Build a presence and boost your ratings on customer review sites

Gartner reports that one in three buyers (33%) rate customer reviews as their most vital consideration when building a vendor list. So, how does this relate to customer retention? When buyers don’t use software comparison sites, the rate of purchase regret jumps from 54% to 64%. By prioritizing customer reviews, you're not simply collecting customer feedback – you’re reducing the chances of buyer regret and influencing customer retention.

Actively manage your presence on review sites by encouraging satisfied customers to leave positive reviews. Respond promptly and professionally to any negative feedback. If a customer leaves a negative review, reach out to address their concerns and offer a resolution. 

15. Provide educational content

Keep customers hooked with helpful, educational resources. By offering valuable resources such as webinars, how-to guides, courses, and admin certifications, you can help customers get the most out of your products or services. The benefits are twofold: not only does it enhance their experience, but it also positions your company as an industry leader.

For example, a B2B software company might offer training sessions on advanced features or share best practices for industry-specific use cases. Regularly updating and distributing educational content keeps customers engaged and informed, leading to increased satisfaction and loyalty.

16. Incentivize referrals

Get customers to spread the word with rewards they’ll actually appreciate. Referral programs can include rewards such as discounts, credits, or exclusive access to new features for both the referrer and the referred. As an example, a customer who refers a new client could receive a month of free service while the new client gets a discounted rate. This not only helps acquire new customers but also strengthens the relationship with existing ones by showing appreciation for their advocacy.

17. Celebrate the customer’s success

Show you care by celebrating your customers' wins. Highlight their achievements through case studies, social media shout-outs, or award programs. If a customer uses your product to achieve a major milestone, feature their story on your website and customer newsletter, for example.

Personal gestures like sending congratulatory notes or small gifts can also make a big impact. Celebrating customer success shows that you value their accomplishments and are invested in their journey.

These celebrations also fuel powerful word-of-mouth marketing. Nielsen's Trust in Advertising study found that 88% of consumers trust recommendations from people they know more than any other advertising channel. 

When you help customers feel successful, they naturally become advocates who share their positive experiences with colleagues and networks. Actively encourage this by making it easy for customers to share wins on social media or leave reviews on platforms like G2 and Gartner Peer Insights.

18. Be a partner, not a vendor

Be more than a vendor – be their go-to partner. Understand your customers' goals and work collaboratively to help them achieve success. This often involves regular check-ins, personalized support, and proactive problem-solving. Consider hosting quarterly business reviews with your customers to discuss their performance metrics, propose and strategize improvements, and demonstrate your commitment to their growth.

19. Consider pricing strategy 

Keep customers happy with clear, flexible pricing. Offer scalable pricing models that grow with your customers’ needs and provide clear, upfront information about costs to avoid any surprises. For instance, a subscription-based software company might offer tiered pricing plans that allow customers to start small and expand as their usage increases. Experiment with discounts for long-term commitments or bundling services to provide more value as well. 

20. Build a customer journey map

Know exactly what your customers go through by building a detailed customer journey map that identifies every interaction they have with your business. From the moment they hear about you to long after they buy, figure out where things work well and where you can improve.

Focus on onboarding, how people actually use your product, and when they need help. Find the challenges and turn them into opportunities. Then, keep checking in and updating your map based on customer feedback and changing needs. Happy customers stick around for the long haul.

21. Align on shared values

Today's B2B buyers want to do business with companies whose values align with their own. Whether your organization prioritizes sustainability, diversity and inclusion, or community impact, making these values visible can strengthen customer relationships and differentiate your brand.

The 2024 Edelman Trust Barometer found that 84% of consumers say they need to share values with a brand to buy from it, and 60% buy or boycott brands to express their beliefs. In B2B contexts, this translates to buyers who want partners, not just vendors. Showcase your company's values through your website, customer communications, and actions.

For example, if your company has strong sustainability initiatives or gives back to the community, share those stories with customers. This approach creates emotional loyalty that transcends transactional relationships and gives customers a reason to stay even when competitors offer similar products.

22. Simplify processes and reduce friction

Every unnecessary step in your customer journey is an opportunity for frustration. Simplifying purchases, renewals, and subscription management can significantly improve customer satisfaction and retention.

Audit your customer experience for friction points: How many clicks does it take to renew a contract? Is your billing process straightforward? Can customers easily upgrade or adjust their plans? Siegel+Gale's World's Simplest Brands study shows that 78% of people are more likely to recommend a brand that provides simple experiences, and 64% are willing to pay more for simplicity.

For B2B organizations, this might mean offering self-service portals for account management, automating renewal reminders, or streamlining the procurement approval process. The goal is to make doing business with you as effortless as possible so customers never have a reason to look elsewhere.

23. Use gamification to drive engagement

Gamification applies game design elements to non-game contexts to motivate participation and engagement. In customer retention, this means using points, badges, leaderboards, and progress tracking to encourage desired behaviors and keep customers invested in your platform.

For B2B software companies, gamification can transform mundane tasks into engaging experiences. Consider implementing certification programs where customers earn badges for completing training modules, or create leaderboards that recognize power users within customer organizations. Research shows that gamification can increase customer engagement by up to 47% and brand loyalty by 22%.

For example, you might reward customers with points for attending webinars, completing product training, or providing referrals. These points can be redeemed for exclusive benefits like early access to new features, premium support, or event invitations. Gamification creates a sense of achievement and progress that keeps customers coming back.

Land and expand customer accounts with industry-leading sales software 

If you've made it this far, you already know: With customer acquisition costs rising by 222% since 2013 according to SimplicityDX research, businesses are rightfully shifting focus to maximizing the value of existing customers.

To thrive in this new landscape, businesses need to master the art of land and expand. This requires a unified platform that brings together sales, account management, and customer success teams so they can collaboratively serve and grow their accounts in order to drive predictable growth.

Outreach is that platform. By streamlining workflows and providing actionable insights, we empower teams to build lasting customer relationships, increase renewals, and unlock expansion opportunities. The result: A repeatable playbook for turning customers into advocates and accelerating revenue growth.

FAQs about customer retention strategies

What are customer retention strategies?

Customer retention strategies are designed to keep existing customers engaged and satisfied with a company's products or services, encouraging them to stick around for the long term. These strategies help reduce customer churn and increase customer retention, ultimately driving business growth. 

Common customer retention strategies include:

• Loyalty programs: Reward repeat customers with points, discounts, or exclusive offers to encourage continued patronage.
• Personalized communication: Tailor messaging and offers based on users’ preferences and past interactions to make your customers feel valued.
• Excellent customer support: Provide prompt and effective support to resolve issues and meet customer expectations.
• Regular engagement: Maintain a strong relationship by keeping customers engaged through newsletters, social media, and other forms of communication.

Implementing these strategies helps create a loyal customer base, improving client retention, and fostering long-term customer success.

What are the 3 R's of customer retention?

The 3 R's of customer retention are Retention, Related Sales, and Referrals. These elements work together to enhance overall customer retention:

1. Retention: keeping customers satisfied and engaged with your products or services, ensuring they stay with your business for the long term. This involves delivering consistent value and meeting customer expectations.
2. Related sales: encouraging customers to purchase additional products or services related to their initial purchase. This not only increases customer lifetime value but also strengthens the customer relationship by providing solutions that meet their evolving needs.
3. Referrals: leveraging satisfied customers to generate new business through word-of-mouth recommendations. Happy customers are more likely to refer your business to others, helping to acquire new customers and grow your customer base.

These three components are crucial to improve customer retention, increase customer engagement, and drive business growth.

What are some common reasons for customer churn?

Customer churn occurs when customers stop doing business with a company. Common reasons for customer churn include:

• Poor customer service: Ineffective or slow responses to customer issues can lead to dissatisfaction and drive customers away.
• Better competitor offers: Customers may switch to competitors if they find better value, prices, or features elsewhere.
• Lack of personalization: Customers who don't feel valued or understood by a company are less likely to remain loyal.
• Unmet expectations: When a product or service fails to meet the promised standards, customers may become frustrated and leave.
• Complicated onboarding process: A difficult or confusing onboarding process can discourage new customers from continuing their relationship with a company.

To address these issues, businesses can focus on improving customer support, offering competitive pricing, personalizing customer engagements, meeting or exceeding customer expectations, and streamlining the onboarding process.

How does customer education contribute to improved retention rates?

Customer education helps customers get more value from a company's products or services. By educating customers, businesses can ensure that customers are fully aware of how to use and benefit from their offerings. 

Effective customer education methods include:

• Tutorials and how-to guides: Providing step-by-step instructions on using products or services helps customers understand their full potential.
• Webinars and training sessions: Offering live or recorded sessions where customers can learn directly from experts and ask questions.
• Knowledge bases and FAQs: Creating comprehensive online resources where customers can find answers to common questions and issues.

By investing in customer education, businesses can enhance customer success, reduce frustration, and encourage customers to continue using their products or services.

How long does it typically take to see improvements in customer retention rates?

The timeline to see improvements in customer retention rates can vary based on the industry and specific strategies implemented. Generally, businesses may start to see initial improvements within 3 to 6 months. 

With Gartner reporting that 73% of CSOs are now prioritizing existing customer growth, early adopters of proactive retention strategies are already seeing measurable results. Consistent effort and measurement are crucial to sustaining and enhancing these gains. Factors influencing the timeline include:

• Industry: Some industries may experience quicker results due to shorter sales cycles or more frequent customer interactions.
• Strategy implementation: The effectiveness and efficiency of the chosen retention strategies can significantly impact the timeline.
• Customer feedback: Regularly collecting and acting on customer feedback can help refine strategies and accelerate improvements.

Overall, while initial improvements may be seen within a few months, a commitment to continuous optimization is essential for long-term customer retention success.