Customer Service

10 best customer retention software (2024)

Titilola Shittu
May 16, 2024

You spend a fortune acquiring new customers, but 80% of your future profits will come from just 20% of your existing customer base! That’s right, keeping your current customers happy is far more cost-effective than chasing new ones. But with churn rates on the rise, how do you ensure those loyal customers stick around?

Implementing effective customer retention strategies is crucial. This article dives into the 10 best customer retention software options in 2024, helping you find the perfect tool to turn happy customers into brand advocates.

What is customer retention software?

Customer retention software is a tool designed to help businesses keep their existing customers and encourage repeat business. It often includes features to manage customer retention programs.

It does this by providing features that help businesses understand their customers better, improve customer satisfaction, and build stronger relationships. There are many possible ways to improve customer retention.

Customer retention software can:

  • Track customer data and identify trends and patterns in customer behaviour. Which helps businesses understand what their customers like, dislike, and what factors they are most likely to churn from.
  • Personalizing the customer service experience of every customers. when you understand your customers better, you can then tailor your communications and marketing efforts to appeal to each customer. Thereby building brand loyalty.
  • This software can also help automate tasks like sending emails when a customer abandons their carts or birthday greetings etc. This can help you create a special bond with your customers, and make them feel more inclined to give referrals.
  • Some customer retention software tools have features like a live chat or ticketing systems that help businesses manage their customer support much more efficiently.

Types of customer retention tools.

Customer relationship management (CRM) software.

Customer relationship management (CRM) software is a tool that helps businesses manage all aspects of the relationships they have with existing customers and potential customers (leads). It’s like a central hub for all your customer interactions, storing information and streamlining processes.

A CRM stores and organizes contact information for leads, clients, and business partners. This eliminates the need for scattered spreadsheets and keeps everything in one place. It helps track sales opportunities, from making the initial contact to deal closure. CRM software can help improve the customer retention rate by providing a personalized service for each prospect/client.

It can also automate repetitive tasks, manage pipelines, and forecast sales. Also, it provides a complete history of customer interactions, allowing customer service reps to give faster and more personalized service.

CRM tools can segment customer data and target specific demographics to execute customer retention strategies. It can generate reports on customer data, sales performance, and marketing campaigns. This allows businesses to identify trends and make more data-driven decisions.

Customer support software.

Customer support software is designed to streamline and improve how businesses handle customer inquiries and issues. It is a command centre for your customer support team. It helps them resolve queries fast and provide a good experience for your customers. This software is a crucial need of any customer retention plan.

The software consolidates customer requests from various channels like email, phone, chat, and social media into a single platform. This eliminates the hassle of juggling multiple messaging platforms and ensures nothing gets missed.

It uses a ticketing system to track and manage customer inquiries. Each request becomes a “ticket” with details about the issue, allowing teams to assign, prioritize, and collaborate on resolutions.

Many support software programs integrate with knowledge bases. This helps to encourage customers to find answers to common questions on their own, reducing the burden on support agents. Some software offers features like automatic routing of tickets based on issue type or canned responses for frequently asked questions. This saves time for agents and allows them to focus on more complex issues.

Customer support software often provides reporting tools to track metrics like resolution time and customer satisfaction. This helps businesses identify areas for improvement and ensure their customer service team is performing well.

Marketing automation software.

A marketing automation software is a digital assistant for your sales, support and marketing team. It can help customer service teams provide proactive support. help your sales team helps your customers achieve the value they seek and overall help your marketing build a connection or rather community with your customers.

The various teams can achieve this by either sending emails, scheduling social media posts, and managing lead nurturing sequences as all these tasks that can be automated with the software. This gives marketers time to focus on creative content development, sales strategy, campaign strategy, and data analysis.

The software allows you to segment your audience and deliver targeted messages based on their interests and behaviour. This personalization can significantly improve campaign effectiveness and conversion rates.

Marketing automation software helps capture leads from various sources and nurture them with targeted content until they’re ready to purchase. This can significantly improve lead conversion rates.

Customer feedback tools.

Customer feedback tools are exactly what the name suggests: digital solutions that help businesses gather and analyze customer feedback. These tools come in various forms, each with its strengths, they all share a common goal: to provide businesses with valuable insights into customer experience, satisfaction, and areas for improvement. Customer feedback tools are veryessential for conducting a customer retention analysis.

It allow customers to provide feedback through various channels, including surveys, polls, in-app feedback forms, email, and social media. This ensures you capture a wide range of customer feedback across different touchpoints in their journey.

Most tools offer user-friendly interfaces for creating surveys with different question types (multiple choice, open-ended, rating scales) to gather quantitative and qualitative data. They compile and analyze the collected feedback, presenting it in easy-to-understand dashboards and reports. This allows you to identify trends, track customer sentiment over time, and measure the effectiveness of changes based on feedback.

Some common tools are online survey tools, in-app feedback tools and social media listening tools. Feedback tools are a powerful resource for businesses to understand their customers better, identify areas for improvement, and make data-driven decisions that will lead to increased customer satisfaction and business growth.

Customer loyalty software.

Customer loyalty software is a tech tool designed to help businesses build strong customer relationships and incentivize repeat purchases. It acts like a management system for your loyalty programs, streamlining tasks and tracking customer engagement.

Loyal customers are more likely to make repeat purchases and recommend the business to others. Customer loyalty software provides effective customer retention solutions.

The software helps design and organize loyalty programs, like points systems, tiered memberships, or referral programs. It automates tasks like awarding points, tracking progress, and redeeming rewards. Loyalty software allows targeted promotions and rewards based on customer purchase history and preferences. This personalization can significantly increase customer engagement and program effectiveness.

It gathers customer data on purchases, interactions, and reward redemptions. This data helps businesses understand customer behaviour and optimize loyalty programs for better results. By rewarding repeat business and offering exclusive benefits, loyalty programs can create a more positive customer experience, increasing satisfaction and retention.

Behaviour analytics tools.

Behaviour analytics tools are software applications designed to delve into the difficulties of how users interact with digital platforms. Behavior analytics tools help businesses develop effective customer retention techniques.

They act like digital detectives, gathering data on user actions and then analyzing it to understand patterns and trends. This knowledge is then used to improve the user experience and ultimately achieve business goals.

They track user actions on websites, apps, and other digital experiences. This can include clicks, taps, scrolls, mouse movements, time spent on pages, and even user journeys (the paths users take through a website or app).

The collected data is then analyzed to identify patterns and trends in user behaviour. These tools often use visual representations like heatmaps and session recordings to make the data easier to understand.

With a deeper understanding of user behaviour, businesses can make informed decisions to improve the design, functionality, and overall user experience of their digital platforms. This can lead to increased user engagement, conversions, and satisfaction.

They can be used to conduct A/B tests, where different versions of a webpage or app feature are shown to different user groups.

7 best customer retention software tools.


Simpu is a customer communication platform that helps businesses track and resolve customer complaints. This helps brand loyalty, improving customer satisfaction and customer retention. Simpu also offers several features that can be used to automate customer service tasks, such as chatbot, live chat and shared inbox. Simpu excels in customer retention management.

The tool acts as a centralized hub for all your customer inquiries, consolidating support requests from various channels like email, phone, chat, and social media into a single platform. This streamlined approach ensures nothing gets lost and allows your team to prioritize and resolve issues efficiently.

Simpu's shared inbox software

Simpu’s AI capabilities can automate basic interactions with customers, answering simple questions and resolving straightforward issues. This frees up agents for more complex tasks and provides 24/7 support to customers.

It provides comprehensive reporting tools that track metrics like resolution time, customer satisfaction, and agent performance. This data helps businesses identify areas for improvement and ensure their customer service team is performing well.

canned response

Beyond core customer support features, Simpu offers a suite of additional products to enhance customer experience across different touchpoints. Simpu email and text marketing tool is designed to build high-performing email and text campaigns.

Simpu’s reporting tools provide valuable insights into customer interactions, helping businesses identify trends and make data-driven decisions to improve customer experience. It offers various plans and features that can adapt to the needs of businesses of all sizes, from small startups to large enterprises - with a 14-day free trial.


Hotjar as a customer retention software specifically helps with website behaviour analytics, valuable for understanding your customers and improve customer retention efforts. Hotjar provides insights that are crucial for the customer retention process.


The tool generates visual heatmaps that show you where users click, tap, and scroll on your web pages. This helps you identify areas of high engagement and areas that might be confusing or frustrating for users.

Insights from Hotjar can help you personalize your website content and marketing messages to better resonate with your target audience. This can lead to increased customer engagement and conversions.


ActiveCampaign is a customer retention software that goes beyond just email marketing. It’s a customer experience automation platform, designed to help businesses build stronger relationships with their customers and drive sales growth. ActiveCampaign can be a central part of your customer retention plan.

One is the key email marketing features is the ability to create visually appealing and responsive emails without needing coding knowledge. Automate email campaigns based on user behaviour, like abandoned carts or website visits, to nurture leads and personalize customer journeys.

Send targeted emails to specific customer segments based on demographics, interests, or purchase history for increased relevance and engagement.

ActiveCampaign helps with marketing automation and sales automation. You can design and publish landing pages to capture leads and convert website visitors into customers.

The sales pipeline management tracks your sales pipeline, visualizes deals, and automates workflows to streamline the sales process. Built-in analytics provide valuable insights to help businesses optimize their marketing and sales efforts for better results.


Yotpo is a powerful e-commerce marketing platform designed specifically to help online businesses drive customer acquisition, improve customer retention, and increase sales. It functions like a one-stop shop for various marketing tools tailored to the needs of e-commerce businesses. Yotpo significantly enhances customer retention efforts.

yotpo platform

The software simplifies the process of collecting customer reviews by sending automated email requests after purchases. It provides tools to moderate reviews, respond to feedback, and showcase positive testimonials strategically on your website.

Yotpo allows customers to easily share photos and videos of their purchases, adding social proof and user-generated content to your product pages.

The loyalty and referral programs feature creates a points system to incentivize repeat purchases and reward customer engagement with your brand. Yotpo helps you design and manage referral programs where customers can earn rewards for recommending your products to their network.

Positive reviews, social proof, and loyalty programs can significantly boost customer confidence and purchase decisions. Yotpo’s features help with nurturing customer relationships and incentivizing repeat business.


Woopra is a customer analytics platform designed to help businesses understand their customers’ behaviour across various touchpoints.

It goes beyond simply tracking website visits and delves into how customers interact with your brand on different channels, providing valuable insights to improve customer experience, and marketing efforts, and ultimately boost sales. Woopra excels in customer retention analysis.

The software tracks customer interactions across various touchpoints like your website, mobile app, email, live chat, and social media. This provides a comprehensive view of the customer journey and helps identify areas for improvement across different channels.

Woopra has customer retention features to gain a real-time view of each customer’s profile, including their past interactions, purchase history, and current activity. This allows you to personalize interactions and provide a more relevant customer experience.


Zapier is a web automation tool often described as the “glue” that connects hundreds of web applications and services, allowing them to work together seamlessly. It essentially automates repetitive tasks between different apps you use to run your business, saving you time and effort. Zapier provides effective customer retention solutions.


As a customer retention software, Zapier uses a simple concept - triggers and actions. You define a trigger which is an event in one app (like a new email in Gmail) and an action which is an automated response in another app (like adding that email to a spreadsheet in Google Sheets). By connecting these triggers and actions, you can automate various workflows.

While pre-built Zaps are a great starting point, Zapier allows you to customize workflows to fit your specific needs. You can connect different apps, choose specific triggers and actions, and filter data to create complex automated processes.

Zapier is a powerful tool for businesses of all sizes looking to automate workflows, improve efficiency, and boost productivity. It’s a versatile platform that can integrate with a vast ecosystem of web applications, making it a valuable asset for streamlining various aspects of your business operations.


Typeform is an online tool designed to make creating and sharing forms, surveys, and quizzes more engaging and interactive than traditional static options. It goes beyond just collecting data; it aims to create a conversational experience for users, making the process of filling out forms more enjoyable.


It offers a variety of question formats like picture choice, opinion scales, and even Likert scales disguised as sliders. This keeps users engaged and makes answering questions more interactive.

You can create dynamic forms that adapt to user responses. Branching logic allows you to show different follow-up questions based on previous answers, personalizing the experience for each user.

Typeform can be used for customer satisfaction surveys, lead generation forms, event registration forms, product feedback quizzes, and employee onboarding forms. It is a valuable tool with a user-friendly interface, making it a great choice for anyone who wants to collect data more interactively.

Features of customer retention tools.

Customer retention software offers a variety of features designed to help businesses understand their customers better, build stronger relationships, and incentivize repeat customers. These tools employ various customer retention techniques. Here’s a breakdown of some of the most common features found in customer retention tools:

Capabilities for managing and analyzing customer data.

  • Group customers based on demographics, purchase history, behaviour patterns, and other relevant criteria. This allows for targeted marketing campaigns and personalized experiences. Tracking customer retention metrics is crucial for understanding customer behavior.
  • Track and analyze the touchpoints customers have with your brand, identify pain points, and optimize the customer journey for better engagement.
  • Assign scores to customers based on their engagement level, purchase history, and risk of churn. This helps you prioritize outreach efforts and identify customers who need attention.
  • Analyze the total revenue a customer is expected to generate over their relationship with your business. This helps you understand the value of different customer segments and prioritize retention efforts.

It incorporates features for a more personalization engagement.

  • Send personalized email campaigns based on customer preferences and purchase history. This increases the relevance of your messages and improves engagement. Personalized email campaigns are often part of customer retention programs.
  • Engage with customers directly through targeted text messages for promotions, abandoned cart reminders, or customer loyalty program updates.
  • Create and manage loyalty programs that reward repeat purchases and incentivize customer engagement. This can include points systems, tiered memberships, or exclusive benefits for loyal customers.
  • Identify and target customers who haven’t interacted with your brand recently. Design personalized campaigns to re-engage them and win them back.
  • Recommend products or services to customers based on their past purchases and browsing behaviour. This improves the experience and increases the chance of repeat purchases.

Allows you communicate important messages to customers effectively.

  • Collect direct feedback through surveys to understand their needs, pain points, and level of satisfaction. Collecting direct feedback is a key part of any customer retention strategy.
  • Offer real-time chat support to answer customer questions and proactively address issues. This improves customer experience and builds trust.
  • Communicate directly with customers within your website or app through targeted messages and promotions.
  • Provide easy ways for customers to leave feedback and suggestions directly on your website or app.

Streamlines repetitive tasks through automation.

  • Automate email campaigns based on customer behaviour, such as abandoned carts or website visits. This allows for timely and personalized outreach. Automating email campaigns is a crucial part of the customer retention process.
  • Automate repetitive tasks like sending birthday greetings or abandoned cart reminders, freeing up your team’s time for more strategic work.
  • Integrate your retention tool with your customer relationship management system to centralize all customer data and ensure a unified experience.

These features in customer retention management software can empower businesses to build stronger customer relationships, reduce customer churn, and drive long-term business growth.

The specific features offered by a particular tool will vary depending on the provider and the pricing plan you choose.

Benefits of having a customer retention management software.

Reduction in customer churn.

The best customer retention software helps you identify existing customers at risk of churning by analyzing their purchase history, engagement level, and other relevant data. This allows you to take proactive steps to win them back before they leave. Reducing churn directly improves the customer retention rate.

The software can help you identify areas for improvement in the customer journey and address customer pain points. This leads to a more positive experience and reduces churn. Customer experience plays a huge part in retaining customers. It’s less expensive and more profitable to retain customers than to acquire new ones.

Increase in customer lifetime value (CLTV).

Customer retention software can help you measure customer retention metrics and manage loyalty programs that reward customer loyalty. This increases the overall value a customer brings to your business over time. Segmenting your customer base and understanding their preferences helps send targeted marketing campaigns and promotions that are more likely to resonate. This leads to increased engagement and repeat purchases. Customer retention programs are essential for increasing customer lifetime value.

Enhanced efficiency in customer support.

Customer retention software can automate many repetitive tasks, such as sending abandoned cart reminders, birthday greetings, or win-back emails. This frees up your customer success teams’ time to focus on more strategic work. The software provides a central location for all your customer data, making it easier to track interactions, analyze trends, and gain valuable insights. Customer retention management is crucial for enhancing support efficiency.

You can streamline communication with customers through features like email marketing, live chat support, and in-app messaging. This allows for faster resolution of customer complaints and better customer service.

Make data-driven and smarter decisions.

The right customer retention software provides comprehensive analytics that gives you valuable insights into customer behaviour, preferences, and churn rates. This data can be used to make data-driven decisions about your marketing, sales, and customer service strategies. Customer retention analysis is essential for making data-driven decisions.

Track the performance of your customer retention efforts and measure the impact of your campaigns on key metrics like customer churn rate and customer lifetime value. This allows you to identify what’s working and what’s not, and make adjustments to your strategy as needed.

Improving the overall experience with customer retention software can lead to a significant return on investment (ROI) for your business.

How to choose the right customer retention tool for your business.

Choosing the right retention tool for your business involves understanding your specific needs and evaluating the features offered by different customer retention tools. The investment in customer retention systems can have a big impact on your customer retention strategies. Choosing the right customer retention platform is crucial for achieving your retention goals.

Define your customer retention goals.

  • What are the main reasons customers churn from your business? Is it a lack of engagement, poor customer service, or simply forgetting about you? Understanding why customers churn is essential for developing an effective customer retention strategy.
  • What are your specific goals for customer retention? Do you want to reduce churn by a certain percentage, increase customer lifetime value, or improve customer satisfaction scores?
  • How much are you willing to spend on an effective customer retention tool? There are a variety of options available with different pricing structures.

Evaluate the tools features and functionality.

Consider the features offered by different customer retention tools and how they align with your identified needs and goals. Not all features will be equally important for your business. Focus on the functionalities that directly improve customer retention. Evaluating features helps you find the best customer retention solutions for your needs.

How easy is the tool to use for your team? User-friendliness is important, especially if you don’t have a dedicated technical team.

Carry out your own research and compare different tools.

Based on your needs and feature priorities, shortlist a few customer retention software tools that seem like good fits. Research online reviews and comparisons of the shortlisted tools to get insights from other users. Conducting customer retention analysis helps you make informed decisions.

Many customer retention tools offer free trials or demos. Take advantage of these to test out the software and see if it meets your expectations.

Make sure it connects to your other tools.

Does the tool integrate with your existing CRM system or marketing automation tools? Seamless integration can streamline your workflows and centralize your data. A well-integrated customer retention platform can further streamline workflows.

If you have an online store, consider if the tool integrates with your e-commerce platform to leverage customer purchase data for personalized experiences.

Simpu's integrations

Find a tool that you know is secure and trusted.

Consider how your needs might change in the future. Will the tool be able to scale with your business growth? Ensure the tool has robust security features to protect your customer data.

Robust security features are essential for effective customer retention management. Having access to helpful support can be important if you encounter any issues with the software.

These steps and carefully evaluating your options can help you choose the right customer retention tool that empowers your business to build stronger relationships, reduce churn, and improve customer retention goals.

By leveraging features like customer segmentation, targeted marketing, and feedback analysis, these tools empower you to understand your customers better, build stronger relationships, and incentivize repeat business. The result? Reduced churn, increased customer lifetime value, and a thriving business.

At Simpu, we offer a comprehensive communication platform designed to improve customer satisfaction and revenue. With features that encourage stronger customer relationships and build long-term customer loyalty.

Titilola Shittu

Content Writer
Titilola enjoys writing content that resonates with a target audience. With an interest in product marketing, she understands the importance of using data to provide actionable insights that help with informed decisions. You can find her listening to music or reading African literature when she's not doing anything marketing-related.

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