Retention of the customers earns more money for businesses with less spending than acquiring new customers.
This is because consumers who already know and like your company tend to pay you more than unknown people who had never heard about your brand.
According to several research and studies, it has been found that odds of making a successful sale to a customer who knows you are 60 to 70 percent, while for the same offerings your chances of convincing new leads and prospective buyers in your easy to use CRM are much lower, around just 5 to 20 percent.
Hence to put it simply it can be said that your business can make more money by withholding good old customers than by chasing new ones.
Now, the reality is not too many businesses take this truth to heart, and rather invest hundredsof thousands of dollars hoping to find and thereafter woo unknown strangers, ignoring the people who are already aware of their brand.
However, businesses that ignore their loyal and seemingly happy fans for too long, without doubt, lose those valuable and precious customers to businesses that understand how to cater a little appreciation for the consumers of their offerings.
Now, you can always turn the slump in your customer retention into a major bonus on your bottom line, but even before you try to do that, consider why two of the most popular of all customer retention tactics (which your business might have tried before) almost never worked in the right way.
Bad Customer Retention Practices in Action
Awesome customer retention strategies are all about balance and not subversion. This is because customers always understand when they have been misled.
Hence, even if you try to manage to con them into staying in your emailing list inside your business growth technology solutions like an easy to use CRM software your customers will never view you favorably for making their lives difficult before.
Therefore, even though there are several businesses that try either ‘hostage holding’ or manipulative ‘surrender tactics’ to encourage their customers sitting-on-the-fence stay, neither of these tactics works well or remains successful for long.
For example, companies that practice ‘hostage holding’ generally forces their customers through a labyrinth of phone trees, unanswered emails, customer support teams, and long hold times in order to avoid the final goodbye.
Now, even though this tactic might have worked in the 1980s, but today, tech-savvy and intelligent customers will only harden their resolve to desert you as they invest their precious time on hold,and even might go to social media and tweet how dreadful are your brand’s services. Therefore, this can never be a great plan for a business that values its image in the marketplace.
The other popular bad strategy for holding customers by using ‘surrender tactics’ is mostly popular in companies that are too afraid to ask their customers to stay.
Now since you can always do something to salvage and recover a relationship with your customer, so why let customers click two buttons and leave you without saying a word?
Hence, if you find that a customer really wants to cancel his stay with your brand make it easier for them without unconsciously infuriating people who just cared for a little hand-holding and help.
We say this because as one of the prominent vendors of small and medium business CRM software platforms, we have often seen that stellar strategies on customer retention allow businesses to hold back active users and stop people from bailing ships when something goes awfully wrong, whereby the best strategies even include a win-back element by which the brand sets the terra firma to earn back the business of the departing customers after their separation with the company.
The real thing is that people do not want band-aids for their pain-points and issues, and so neither ‘surrender tactics’ or ‘hostage holding’ works, nor cheap tactics like promotions and discounts.
This is because consumers only want your business to solve their problems effectively, and so if you just do that they will be too busy enjoying your partnership and thereby forget leaving you.
Best Practices for Customer Retention in 2020
Now in modern times, you do not need a retention gimmick at all to keep your customers happy. Instead what your business needs are a replicable effective strategy that can aid in making people come back, answer their questions, and address their concerns with the right actions every time.
Hence here are five best practices that we found as one of the best vendors of small business CRM in the Salesforce Alternative CRM space that can help you to boost your businesses’ retention rate and thereby increase your brand’s bottom-line.
1. Get re-engaged with inactive users
Do you use business growth technology to track how your brand’s consumers use your subscriptions and services?
If it is so then you can easily stall account cancellations by reaching out to your customers who may not be getting the most value from your partnership.
Send special offers and product and service updates when applicable, and also ask users of your brand’s offerings why they drifted away so that this knowledge can help you to solve their issues and pain-points with an offering instead of facing the brunt of an ugly cancellation of services.
2. Build a customer-focused happy off-boarding experience
Do not panic if you find that your customers still want to leave, even after you have tried everything. Rather it is advised that in such cases make the departure or cancellation process as easy as possible to leave a great impression.
Try to find out the exact reason why the customer primarily felt the urge to cancel, and if it so that you cannot solve the issue immediately, ask the customer if you can follow-up in the future to make them regain trust in your company.
This is because even if that customer may not be a fit today, however, if you part on good terms, you may easily win back that same person within the next couple of months.
3. Use strategically placed win-back campaigns
Even after the customer has left your brand, if you are using an easy to use CRM software for maintaining business relationships, automate the software to keep up a consistent (but not too frequent) campaigns of communication to keep your brand on the top of your customer’s mind.
In these campaigns discuss issues that compelled your customers to leave and show them what your company is doing to rectify them.
Additionally, if any customer has left your business since they did not like your limited options if you advertise a new product line they may return back to restart a business relationship with your company.
4. Trust and lean on the machines
In recent times Machine Learning is a cutting-edge technology that empowers modern businesses to analyze through the chaotic and disorganized data and parse through campaigns to identify which are the onesthat would resonate the most with the customers.
Machine Learning, when installed even in best CRM software for SMB organizations which are mostly cloud-based business growth tools and can be used by startups and small and medium businesses, allows small companies to weed out people who are trying to leave your brand easily.
In fact automation in the recent era has helped businesses to put as much work as possible on the shoulders of the robots so that your employees can sit back and focus on what they do best respectively in their job.
Hence next time you hear any of your customers complaining, do not dismiss the other party as a bad fit, but rather think of what your brand can to retain and please the consumers who perhaps need a little help and thereby continue to refine your businesses’ retention strategies which will not only lower your brand’s customer churn but will also boost your businesses’ ability to appeal to the target audience who are happy or unhappy with your brand’s products and services.