{"id":903157,"date":"2018-06-25T10:30:07","date_gmt":"2018-06-25T17:30:07","guid":{"rendered":"https:\/\/influitive.com\/?p=35664"},"modified":"2018-06-25T10:34:26","modified_gmt":"2018-06-25T17:34:26","slug":"the-foolproof-3-step-strategy-for-customer-retention-and-loyalty","status":"publish","type":"post","link":"https:\/\/customerthink.com\/the-foolproof-3-step-strategy-for-customer-retention-and-loyalty\/","title":{"rendered":"The Foolproof 3-Step Strategy For Customer Retention and Loyalty"},"content":{"rendered":"<p>This is a visualization of the typical SaaS buying process, which has clear stages and great content to guide buyers toward purchasing your product:<\/p>\n<p><em>This is a thing of beauty.<\/em><\/p>\n<p>People in your organization are constantly examining, optimizing, and perfecting it.<\/p>\n<p>Now, this is a visualization of your customer\u2019s journey once they sign on the dotted line:<\/p>\n<p><em>Good luck to brave soul navigating this mess!<\/em><\/p>\n<p>After onboarding, SaaS customers usually have to navigate their own way to success\u2014with maybe a few customer success manager (CSM) calls if they\u2019re a large enough account to warrant having one, and a knowledge base to get them there.<\/p>\n<p>It\u2019s like the scene in Lord Of The Rings where Gandalf gives Frodo the ring and sends him running toward Mount Doom with vague instructions and little help.<\/p>\n<p>Favoring the prospect journey over the post-sale customer journey is a huge missed revenue opportunity for SaaS businesses, who underinvest in their customer retention strategies. Research has found that:<\/p>\n<ul>\n<li>The probability of selling to a <strong>new prospect is 5 to 20%<\/strong>. The probability of selling to an existing customer is <strong>60-70%<\/strong>. (<a href=\"https:\/\/www.forbes.com\/sites\/patrickhull\/2013\/12\/06\/tools-for-entrepreneurs-to-retain-clients\/\"  rel=\"noopener\">Marketing Metrics<\/a>)<\/li>\n<li><strong>80% of a company\u2019s future profits<\/strong> comes from <strong>20% of its existing customer base<\/strong>. (<a href=\"https:\/\/www.forbes.com\/sites\/gartnergroup\/#17db45376deb\"  rel=\"noopener\">Gartner<\/a>)<\/li>\n<li>A <strong>5% increase in customer retention<\/strong> can <strong>increase profits by 25% to 95%<\/strong>. (<a rel=\"nofollow\" href=\"http:\/\/www.bain.com\/Images\/BB_Prescription_cutting_costs.pdf\"  rel=\"noopener\">Bain &amp; Company<\/a>)<\/li>\n<\/ul>\n<p>The good news is that priorities around customer engagement and retention are shifting: <strong>63% of C-suite leaders<\/strong> at global companies believe that the customer experience is a \u201cvery important\u201d investment priority, with 42% having boosted spending in this category in the last three years, according to <a rel=\"nofollow\" href=\"https:\/\/www.genesys.com\/en-gb\/resources\/the-value-of-experience-how-the-c-suite-values-customer-experience-in-the-digital-age\"  rel=\"noopener\">The Economist Intelligence Unit<\/a>.<\/p>\n<p>Most companies have a few disparate programs (read: email blasts and NPS survey sends twice a year) in place to engage customers post-onboarding. However, it\u2019s hard to find sophisticated programs that make long-term customer success, retention, and advocacy a predictable outcome.<\/p>\n<p>In this blog post, we\u2019ll walk you through the three-part framework for creating meaningful customer relationships that last. Creating these relationships is the foundation for retaining customers long term\u2014not just as customers, but also as <a href=\"https:\/\/influitive.com\/blog\/what-is-advocate-marketing-plus-7-advocacy-faqs\/\"  rel=\"noopener\">advocates<\/a>.<\/p>\n<div class=\"callout-slide callout-panel callout-panel-alternate\" id=\"slide-35684\">\n<div class=\"inner-content-wrapper\">\n<div class=\"callout-slide-content\" readability=\"31.428571428571\">\n<div class=\"callout-slide-content-inner\" readability=\"34.285714285714\">\n<p><strong>The SaaS Vendor&#8217;s Guide to Customer Engagement, Retention and Advocacy<\/strong><\/p>\n<p><strong>Interested in reading 25 epic examples of companies who&#8217;ve used the DNM framework? Download this guide to peer inside the engagement &amp; retention strategies of 25 innovative SaaS companies.<\/strong><\/p>\n<p><strong><a rel=\"nofollow\" href=\"https:\/\/influitive.com\/resources\/saas-vendors-guide-customer-engagement-retention-advocacy\/?utm_medium=blog&amp;utm_campaign=the-saas-vendors-guide-to-customer-engagement-retention-and-advocacy&amp;utm_source=the-foolproof-3-step-strategy-for-customer-retention-and-loyalty\" class=\"callout-button button\">Download now!<\/a><\/strong><\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"inner-content-wrapper\" readability=\"70.165687426557\">\n<p>The best method for turning passive customers into power users\u2014and then into vocal advocates\u2014is called the <strong>Discover, Nurture, Mobilize framework (DNM)<\/strong>. This method eases customers into bigger asks\u2014such as renewals, upsells, and referrals\u2014by first understanding their needs and delivering value.<\/p>\n<p><em>You wouldn\u2019t propose on a first date, so why ask customers to commit to a renewal if you\u2019ve barely built a relationship with them since implementation?<\/em><\/p>\n<p>Forging tighter customer relationships may sound like it requires a lot of 1:1 outreach. However, with the right strategy and <a href=\"https:\/\/influitive.com\/blog\/10-features-your-advocate-marketing-platform-should-have\/\"  rel=\"noopener\">the right technology<\/a>, it is possible to make the process of building closer customer relationships systematic and scalable.<\/p>\n<p><img decoding=\"async\" loading=\"lazy\" class=\"aligncenter wp-image-35667\" src=\"https:\/\/influitive.blob.core.windows.net\/media\/2018\/06\/001cs3.png\" alt width=\"434\" height=\"350\"\/><\/p>\n<p><strong>Here\u2019s how the DNM framework works:<\/strong><\/p>\n<h3>Stage 1: Discover<\/h3>\n<p>At this phase, you need to discover who your advocates are and then invite them into your program. Some common ways to discover advocates are finding super-fans on social media, or pulling a list of high NPS scorers.<\/p>\n<p>In the Discover stage, you also need to identify your users\u2019 persona(s), including what they value and what they want to learn from you. This involves going beyond just product needs and professional pain points.<\/p>\n<p>Gaining insight into their personal interests and demographic information will also make it easier to engage with them. It\u2019s important to collect and store this data in a way that will make segmenting your customers and tailoring their experience easier in the future.<\/p>\n<p><strong>The key goal:<\/strong> Understand what will motivate customers to engage in your programs, so you can create a plan to build strong relationships with them in the Nurture stage.<\/p>\n<\/div>\n<div class=\"callout-slide callout-panel callout-panel-alternate\" id=\"slide-23465\">\n<div class=\"inner-content-wrapper\">\n<div class=\"callout-slide-content\" readability=\"33.107142857143\">\n<div class=\"callout-slide-content-inner\" readability=\"37.425465838509\">\n<p><strong>The Brand Advocate Persona<\/strong><\/p>\n<p><strong>In this eBook, learn to extend persona development beyond the buying process in order to understand the different profiles of your customers&#8230; and most importantly, understand what motivates some customers to become active advocates for your brand, while others remain disengaged.<\/strong><\/p>\n<p><strong><a rel=\"nofollow\" href=\"http:\/\/influitive.com\/resources\/brand-advocate-persona\/?utm_medium=blog&amp;utm_campaign=brand-advocate-persona&amp;utm_source=the-foolproof-3-step-strategy-for-customer-retention-and-loyalty\" class=\"callout-button button\">Download now!<\/a><\/strong><\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"inner-content-wrapper\" readability=\"74.504334121355\">\n<h3>Stage 2: Nurture<\/h3>\n<p>At this phase, your objective is to educate your customers with helpful resources and give them opportunities to engage with your team and your wider user community, so you can guide them towards success.<\/p>\n<p>You should also focus on <a href=\"https:\/\/influitive.com\/blog\/create-moments-matter-customers\/\"  rel=\"noopener\">creating moments of surprise and delight<\/a> to build goodwill with your advocates. Finally, you should start collecting feedback to understand which customers are on the path toward advocacy, and which may need extra support.<\/p>\n<p><strong>The key goal:<\/strong> Give value freely to your customers without expecting anything in return. This way, when you ask for something in the Mobilize stage, they\u2019ll be likely to reciprocate.<\/p>\n<h3>Stage 3: Mobilize<\/h3>\n<p>In this final phase, you need to inspire customers to act on the goodwill they feel toward your company through various forms of advocacy.<\/p>\n<p>You can achieve this by clearly explaining how advocacy benefits both the customer and your organization. It\u2019s best to start with small asks before moving onto larger ones. When customers advocate for you, it\u2019s important to show them appreciation through sincere thanks and <a href=\"https:\/\/influitive.com\/blog\/4-levels-of-advocate-rewards-and-recognition\/\"  rel=\"noopener\">rewards<\/a>.<\/p>\n<p>This will cement your relationship, and make them want to advocate for you again in the future.<\/p>\n<p><strong>The key goal:<\/strong> Motivate customers to perform acts of advocacy, so they feel psychologically committed to your organization (and therefore less likely to churn).<\/p>\n<p>You may think that the biggest predictor of customer renewals and retention is success with your product. However, since other companies may be able to replicate your technology, having a product that works is just table stakes.<\/p>\n<p>The real differentiator is <em>how you make customers feel<\/em>. <a rel=\"nofollow\" href=\"https:\/\/www.mckinsey.com\/business-functions\/operations\/our-insights\/the-secret-to-delighting-customers-putting-employees-first\"  rel=\"noopener\">McKinsey &amp; Company<\/a> reports that customers who are emotionally engaged are three times more likely to repurchase a product and recommend it to others.<\/p>\n<p><strong>And the best way to make customers feel an emotional connection to your brand is by building meaningful 1:1 relationships with them.<\/strong> Customers that have a strong bond with your company are more likely to invest time in your products and forgive mistakes. They\u2019re also less likely to walk away if it means leaving valuable relationships with your team and your larger customer community behind.<\/p>\n<p><strong>If you\u2019re ready to make your customer retention strategy a priority, here are some resources to get you started:<\/strong><\/p>\n<\/div>\n<div class=\"callout-slide callout-panel callout-panel-alternate\" id=\"slide-34288\">\n<div class=\"inner-content-wrapper\">\n<div class=\"callout-slide-content\" readability=\"30.561926605505\">\n<div class=\"callout-slide-content-inner\" readability=\"32.912844036697\">\n<p><strong>Success Story: How Katie Boosted Retention By 58% Through Advocacy<\/strong><\/p>\n<p><strong>Learn how Katie from Rosetta Stone leveraged an advocate community to scale Customer Success efforts and boost her retention rate by 58%.<\/strong><\/p>\n<p><strong><a rel=\"nofollow\" href=\"https:\/\/influitive.com\/resources\/rosetta-stones-customer-retention-strategy-advocacy-program\/?utm_medium=blog&amp;utm_campaign=success-story-how-katie-boosted-retention-by-58-through-advocacy&amp;utm_source=the-foolproof-3-step-strategy-for-customer-retention-and-loyalty\" class=\"callout-button button\">Download now!<\/a><\/strong><\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"callout-panel content-section-wrapper mkto-format\">\n<div class=\"callout-panel-wrapper\">\n<div class=\"inner-content-wrapper\" readability=\"32\">\n<div class=\"callout-panel-content\" readability=\"34\">\n<p><strong><span class=\"callout-heading\">Subscribe to Influitive&#8217;s advocate marketing blog<\/span><span class=\"callout-subheading\">Enter your email address now to receive the latest advocate marketing resources delivered right to your inbox every other Wednesday! You can withdraw your consent at any time.<\/span><\/strong><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>This is a visualization of the typical SaaS buying process, which has clear stages and great content to guide buyers toward purchasing your product:<\/p>\n<p>This is a thing of beauty.<br \/>\nPeople in your organization are constantly examining, optimizing, and per&#8230;<\/p>\n","protected":false},"author":8620,"featured_media":898118,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[128,107,86],"tags":[],"_links":{"self":[{"href":"https:\/\/customerthink.com\/wp-json\/wp\/v2\/posts\/903157"}],"collection":[{"href":"https:\/\/customerthink.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/customerthink.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/customerthink.com\/wp-json\/wp\/v2\/users\/8620"}],"replies":[{"embeddable":true,"href":"https:\/\/customerthink.com\/wp-json\/wp\/v2\/comments?post=903157"}],"version-history":[{"count":0,"href":"https:\/\/customerthink.com\/wp-json\/wp\/v2\/posts\/903157\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/customerthink.com\/wp-json\/wp\/v2\/media\/898118"}],"wp:attachment":[{"href":"https:\/\/customerthink.com\/wp-json\/wp\/v2\/media?parent=903157"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/customerthink.com\/wp-json\/wp\/v2\/categories?post=903157"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/customerthink.com\/wp-json\/wp\/v2\/tags?post=903157"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}