Customer retention vs. acquisition: what is more profitable for your business?

Customer retention is not just an indicator of your customer's loyalty, it is a real financial benefit. 

• Increasing the customer return rate by as little as 5% can increase a company's profits by 25-95%. 

🚀Important: Investing in customer retention often yields a much higher ROI than the cost of attracting new customers. 

Tranzzo operates at the intersection of financial technology and e-commerce, so we understand well what exactly influences a customer's decision to make a repeat purchase or, on the contrary, interrupt the payment process. 

We analyze user transaction behavior daily, know the key barriers that make them leave businesses, and help companies create effective payment experiences.

Below, we will analyze what factors influence customer return rates, how to measure them, and what businesses need to do to improve them. ⬇️

Losing customers is rarely accidental. It is usually the result of specific problems in the interaction with the business. Based on our experience in the global market, we have identified the key factors that make customers not return:

❌ Poor user experience (UX)

Imagine that you are purchasing in an offline store. After a long time of choosing the store and the product itself, you encounter either a checkout failure, a slow cashier, or an inconvenient counter where you cannot see the terminal. Most likely, you are unlikely to return to this store after such an unpleasant experience. 

When it comes to online shopping, the process should be even easier and even faster. After all, if the purchase or interaction with the service is annoying, the chance of a return drops sharply. 📉

What indicates a bad UX?

• Complex website or mobile app
• Excessive number of steps in the payment process
• Slow page loading speed
• Lack of convenient payment methods

📌 88% of customers are less likely to return to a website after a bad user experience – HubSpot

❌ Problems with payment and security

The less trustworthy a website looks, the more likely it is to be abandoned. Customers don't return if they encounter difficulties with payment or have doubts about the security of their transactions. For example: 

• The payment was declined without explanation
• No convenient payment method (e.g. Google Pay, Apple Pay)
• No confirmation of successful payment

❌ Poor level of service

In this case, you can also use the example of an offline store. If a consultant was rude to you and did not wish you a ‘Good day’, then your shopping experience will be far from positive.

• Slow or incompetent support
• Lack of quick problem-solving
• Indifference to customer feedback

📌 96% of dissatisfied customers do not complain about bad service while 91% of them will simply leave

❌ Lack of personalisation

It is important for each client to feel that they are the main priority for the business. If their preferences are ignored, they will go to competitors.

• Lack of personalized recommendations
• The same offers for all customers
• Untargeted marketing campaigns

❌ Lack of a loyalty program

Quality service is not enough for a modern customer to make a repeat purchase. It is important to motivate them and offer more when they return. If a customer is not motivated to return, they will easily choose another brand.

• Lack of bonuses or cashback
• No special offers for regular customers
• Unclear or complicated system of accumulating points

Find out more about why customers abandon shopping carts  ➡️ at the link

Increasing customer return rates directly depends on the convenience of payments, transaction security, and stability of the payment infrastructure. 

Tranzzo creates solutions that allow businesses to eliminate UX issues, minimize the risk of payment failure, and provide a seamless financial experience for users.

✅ Tokenisation for convenient and secure recurring payments

Thanks to tokenization, customers can pay for goods and services in one click without having to enter their card details each time.

• Instant recurring payments without any extra actions on the part of the customer
• Reduced fraud risk: real card data is not stored but replaced by a unique token
• Higher conversion rates: users do not leave the site due to a long payment process

Find out how the Tranzzo team reduced the share of declined transactions by 43% thanks to tokenization for Tickets.ua ➡️ by following the link

✅ Connecting convenient payment methods

Tranzzo supports a wide range of local and international payment methods, including cards, digital wallets (Apple Pay, Google Pay), bank transfers, and alternative payment methods. This significantly reduces the percentage of abandoned carts.

How to increase conversion rates with ApplePay and GooglePay payment integration by Tranzzo? ➡️ read article here

✅ Fraud monitoring and enhanced security

If a customer encounters suspicious transactions or fraudulent write-offs, they will not only not return, but may also initiate a chargeback. Tranzzo uses adaptive fraud monitoring algorithms to prevent such situations.

✅ Customized checkout

Tranzzo creates a fully customized multilingual page with your brand elements, hosted on your domain, or a widget that can be integrated in 5 minutes.

• Branded checkout page reduces abandoned carts by 10%+
• Trust badges increase trust, boosting conversions by up to 18%

Customer retention is not only about reducing marketing costs but also about steady revenue growth. Businesses that focus on the convenience, security, and personalization of payments significantly increase customer loyalty and gain a competitive advantage.

Together with our Tranzzo team, you can:

🚀 Make payments as easy and fast as possible

🚀 Ensure the security of transactions

🚀 Use personalized checkout for customer convenience

🚀 Optimise processes and minimize losses from declined payments

Contact us to get personalized advice and find the best solution for your business.

📩 Leave a request

Or contact us directly: sales@tranzzo.com