Customer Retention: 3 Reasons Why You Should Care about Existing Clients
The dynamics business world induces the companies to produce the new products and services for attracting the prospects faster and more productively. While some organizations usually spend the costs on the customer acquisition, the client loyalty considers one of the most effective ways of enhancing the company's revenue.
According to statistics by the Bain and Company, a 5% growth in the customer retention can enlarge the business ROI by 75%. The Marketing Metrics explains that it is twice as much easier selling to the current clients than to the brand new prospects. So, let's find out why the customer retention is a critical component for boosting the organization's revenue and how CRM can help you enhance the repeat purchase of your product or service.
3 Argumentations Why You Need a Client Retention Program
The customer retention includes the actions that retain the clients over a certain period of time and exclude the possibilities of any client defections. Here are the top reasons of the customer loyalty significance to the company bottom line:
Lower marketing costs. Skip wasting a lot of time on searching the leads and convincing the prospects to buy your service or product. Besides, the existing consumers can provide you with the useful feedback on your company performance. You can exploit the valuable insights for further business improvements.
Enhance conversion rates. The current customers have already purchased from you and the good experience induced them to come back. The trust and confidence have been already established and the essential client's’ information has been taken into consideration. This helps easily determine the users’ requirements and build the long-term relationships.
Enlarge profits. The lifetime customers can not only enhance ROI, but they are also less price sensitive. These users are willing to pay the full price because of understanding an additional value they get from your organization. Since these customers confide in you, it is easier to upsell or cross-sell more products or services to the existing users.
So, building the lasting customer relationships is critical to the business success. However, in order to reach the desired results, you should implement the efficient customer retention strategies. Today’s most successful companies use CRM as a loyalty management tool.
CRM System as a Proven Way to Winning the Customer’s Love
The focus of every organization is to prosper through the enduring client experience, and CRM provides you with an opportunity to accomplish this task with the help of:
keeping in touch. Responding to the customers’ concerns is an inevitable part of the successful business strategy. However, answering the customer’s requests only one way of communication with the existing clients. Since CRM obtains the consumer’s data and contact information, equip them with the business updates and news, announcing the sales offers, asking for feedback, etc.
rewarding the customers. The information gathered in CRM helps you identify which of the accounts is responsible for the most ROI. In this case, you can budget your time accordingly and distribute the resources where they can have the maximum return. Furthermore, reward the most profitable personas to nourish the future retention.
personalizing the follow-ups. According to UK report, the personalization using purchase history, requirements, and other CRM data produces a high impact revenue. While registering a contact, record the personal notes about the customers for personalizing your outreach and adjusting the follow-up strategies consequently.
scheduling time with customers. CRM enables you with arranging the follow-ups calls and emails, as well as assigning to your colleges. As a result, you can track your appointments, and exclude a possibility of missing any essential tasks.
As you can see, CRM plays an integral part of the successful customer retention strategy and business growth. In case your CRM system lacks the essential capabilities for building the long-term client relationships, and you want to move your records to the more advanced platform, consider an automated migration service Trujay. The SaaS helps you perform the import securely, offers to map the modules on your own and includes a free Demo Migration to see the process in action.
Engaging the new customers is a great idea, but turning the old ones into the lifetime fans is the most significant aspect. So, provide more value for your consumers while creating the trusting relationships, communicate with them and feed with valuable information, as well as motivate your team to deliver the exceptional customer service.