You are a Forex Broker and wondering how to keep your clients on your brokerage? Client retention is an essential field that you give extra effort to be their permanent platform.
Due to increasing demand in the Covid pandemic, lots of new brokers have arrived in the FX industry. While the market is getting more and more competitive every day, the customers have less incentive to stay at the FX broker they are currently working with. If they have any complaints about the services, they can shift all their investments to other alternatives. In that case, the only way to hold your customer in your hands is to provide a splendid platform.
However, the FX industry does not have so much space for FX brokers to differentiate themselves from the others. After you have welcomed your new customers to your platform, your main purpose should be to keep them inside. Thanks to the competitive market, you can do that not by restrictions, but by your analysis of user experience and expert team. Client retention rate is the strongest metric that helps you to comprehend how your marketing effort and services have performed.
How to Calculate Client Retention?
The calculation is demonstrated below:
Client Retention Rate = (E-N)/S, where
E = the number of clients who stayed at your business at the end of a period (weekly, daily, etc.)
N = the number of new clients you get into your business in that period.
S = the number of clients you had at the starting point of the period.
Suppose that you had 1000 customers at the beginning of a week. Then, you have acquired 400 new customers and you have 1300 clients at the end of the week. Then, your CRR would be (1300-400)/1000= 90%. The ratio is so high, which means that you have a successful performance by satisfying your customers.
Compared to gaining new customers, the retaining process seems more cost-efficient according to research. Invesp’s work indicates that acquiring a new client is seven times more costly than retaining an old one.
New Services and Products
Other data show that the existing customers are 50% more likely to try new services and products. As stated before, you have to create and provide something fresh for your customers to get ahead of the other brokers. The acceptance and popularity of your launched product are directly correlated to your client retention rate. Thus, you may shape your marketing effort by considering not only new clients but also the sake of existing clients.
To boost your client retention rate, content is a very effective tool. You can manage different articles and news to keep your clients informed and up-to-date all the time. Additional to financial literacy, reviews and social proof also serve as a weapon for retention by creating a sense of contribution from the existing clients.