Creating a killer product or building a great company ethic just won’t do. Nowadays, acquiring new customers can take a lot of time, effort, and money. Nevertheless, despite the fact that customer acquisition is expensive, customer retention is as important as customer acquisition.
According to research by Bain & Company, customer retention rates increases profits by 25-95%. That is why it is important to pay attention to your current customers today. Keeping your current customer base to repeat business with you is of utmost importance.
However, before delving into the topic of customer retention strategies, you have to understand the topic in a simpler sense.
What’s the difference between customer retention and customer acquisition?
Customer acquisition and customer retention are two different aspects, yet holds the same importance for small businesses and even enterprises.
To put simply put things, customer acquisition refers to attracting and gaining a potential customer. Most companies consider the cost of customer acquisition as an important benchmark in evaluating how much value their customers bring to their businesses.
Customer acquisition requires attracting, converting, and closing deals with potential clients. Much of the acquisition process involves plenty of marketing initiatives like commercials, online ads.
Whilst, customer retention refers to the numbers of customers that companies are able to hold on to and the number of times they’ve done repeat purchases with your business. In order to retain customers, businesses must come up with an impeccable customer service and a killer product concept.
You may provide quality products and services, come up with incentive and customers loyalty programs or any strategy you may feel that might lead existing customers into loyal customers.
Why is Customer Retention So Important?
As established in the opening of this article, customer acquisition is very expensive. It might cost up to 5 times more to acquire a new customer than it does to retain an existing customer. There’s also a link between customer retention rates and profit margins.
In a recent statistic, you are more likely to sell more to an existing customer (at least 40%) than converting someone who has never transacted with you before.
Also, at least 31 percent of your existing customer are more likely to spend more than your new leads. 50% of your loyal customers are more likely to try your new products rather than your new leads.
Having said that, it is essential to come up with a customer retention strategy for your business. Pronto. With that, try getting some help with a customer relationship management (CRM) software.
How do CRM solutions help in customer retention?
A CRM platform helps businesses find customers or prospects and then engaging with them. CRM systems are also built to help your business in identifying loyal customers and make customers feel like they matter the most to you.
A CRM software can also help you resolve issues quickly and treat your customers fairly. Remember that your customers will judge you base on how you handle their complaints and issues.
With a CRM, you will gain an ability to handle your customers and your business as a whole. You can have access to customer information, and use that information for the benefit of your business and your customers.
So, how to use CRM for customer retention? Here are some useful customer retention tips with the help of CRM.
Build up a full view of your “customer journey” map
The journey of your customers requires a single step. This is where you and your business should gather information. The plenty information you have, the better.
This will help your sales team keep tabs on the impacts of your marketing strategy, concerning consumer interaction. You also need to track the needs and demands of your potential customers. Having raw data is not enough to communicate with your customers.
Having a CRM not only allows you to gather crucial customer information but also jot down focal points of customer’s experience. This involves initial contact (brand awareness), process of engagement (urging your customer to purchase) and long-term relationship (post purchase involvement).
Customer relationship management tools can give you helpful insights into the touch points of your consumer interaction and post-purchase engagements, in collation with data provided by the journey map.
Hence, allowing you to asses the strengths and weaknesses of your marketing strategy and also gives you the chance to refine them the next time you re-engage with your customer.
Target your customers with tailor-made offers
Every customer has a purchase behavior or consumption pattern. You can use this to your advantage by extracting the point of interaction and create programs that encourages further loyalty.
A CRM software has the ability to gather information on your customer’s consumption and purchase history. With this information, you and your team can design offers that are appealing to your individual customers. Furthermore, this will add relevancy, which in turn keeps your brand recognition at high value.
Identifying ways to convert customer interest into an actual purchase is the main focus of your campaigns. This can be achieved you provide discounts and offers that adds value to the whole customer experience.
Furthermore, this helps you create a proactive customer relationship, where repeat purchases are more likely to happen due to smart target centric offerings. The more target-centric your offers are then the more likely for your value to go up.
Create irresistible Loyalty Programs
Every business has its own fair share of loyal customers. If a customer has had great experience with a certain business, it urges them to repeat purchase on a frequent basis.
The information you’ve gathered using a CRM can bring out the various levels of engagement you’ve made with your customers Thus, revealing which accounts are in charge of the most revenue.
This information helps you create loyalty programs for your valued customers. Loyalty programs create proactive relationship with your profitable customers. Thus, creating an outstanding experience for them. The more striking your loyalty programs are the more likely you’ll get referrals from these loyal customers.
You can gather your loyal customers and put them into a consolidated list through CRM software. After which, you can start to follow up through email marketing campaigns by letting them know about the rewards and incentives. By doing so, you are encouraging your customers to continue to stay as your most profitable customers.
Personalize your interactions
A relationship is established if there’s a mutual ground between people. A CRM software can help you see your customer beyond the habits of revenue.
The effects of personalization can create a great impact to not only purchase but also with your post-purchase relationship between you and your customer. That is why it is essential to reach out to your customers on a frequent basis, to increase the value of your customer service.
Personalization, user preferences and other relevant information found in a CRM software can help you deliver a high impact ROI, help you extend your outreach, and cover a new target-base interaction.
The moment your customers have an optimized experience with your business, your satisfied customers will most likely refer your services on various social media platforms. This will lead to increasing the point of interest which you have never tapped before.
In order to further personalize your interactions with your customers, add their birthdates, names and other things that might interest them into the system. Arming yourself with this information allows you to adjust your follow-up strategies accordingly.
Assess your performance
Feedbacks are essential for growth, and conceiving and executing a successful sales and marketing campaign. You have to be aware of the success rate and especially of your shortcomings of your sales strategy to proceed in making it more effective and efficient.
There’s no other way to obtain honest feedback than from your customers themselves. Having access to this type of information allows you to re-align or re-adjust your strategies while maintaining your business goals.
You can use a CRM to send out surveys to your customers and wait for the results. Or you can easily have access to insights through the dashboard where you can have access to insights and graphs.
Choose a CRM that grows with you. Choose Saphyte.
Retaining customers is tough. However, a journey to a greater business begins with a single step.
Saphyte is an online CRM software that helps small to medium-sized businesses in streamlining their corporate activities and integrate them into a single platform. The software is built with sales and marketing tools designed to improve any business’s sales process.
Saphyte CRM allows its users to manage data, conduct marketing tactics and strategies, and identify opportunities that can benefit businesses for the long haul.
Saphyte is also built for flexibility and scalability. The software can support almost every sector because of its customization features. Users of the platform can customize the system according to their processes, so it will easily adapt to your business process.
On top of that, Saphyte is built with the end-user in mind. Users can easily navigate through the software; it’ll feel like you’re scrolling through your social media accounts and pages. Plus, the software is built for scalability. As your business scales up, Saphyte will also grow and accommodate your growing database and processing needs.
To top it all up, Saphyte comes with pay-as-you-go budget friendly monthly fees. No extra fees. No hidden charges. No installation or set-up fees.
Inclusive of a free demo and training. 24/7 customer service with exceptional customer service representatives for every subscription plan.
When it comes to customer retention, choose a reliable CRM partner for your business. Choose the one that adapts to your processes and grows with your business. With that, choose Saphyte.
Contact us now to book a free demo.