Ways to Boost Customer Retention with CRM
Is CRM part of your customer retention strategy?
CRM – or Customer Relationship Management in every business strategy plays a significant role and for customer retention CRM is a key part. In the never-ending goal of gaining new customers and maximizing revenue, acquiring new customers is costly. Customer retention is essential to growing your sales. When it comes to your company’s growth and profitability, nothing is more important than your customer. If done rightly a small increase in customer retention can significantly raise profits and gives better ROI.
Let’s quickly take a look at as why customer leaves a company?
Customer Persuaded to go to competitor
Customer is dissatisfied with your service
Customer believes that you don’t care about them
What is Customer Retention and Why should you care about existing customers?
Your best customers don’t just buy one product or use your service once. Customer retention is the ability of a business to retain customers or engaging existing customers to continue buying products or services from your business.
Achieve better conversion rates. Existing customers have already bought from you, so if they had good experience, they will buy from you again. Trust and confidence have already been established and you know something about them already and therefore, it’s easier to identify their needs.
Lower cost of marketing and Increase profits: Existing customers can give you valuable feedback on your performance and you will be less focused on price as opposed to new customers, as you might not need as many discounts that you would usually use to attract new customers.
Read on for a few simple ways that your team can use its CRM to improve customer retention.
Keep your customers happy can lead to retention of best customers
Paying close attention to your customers will help grow your business by selling more to current customers. This can be done through by creating a list of all of your VIP customers, and then create a list of all sales made within the last six months using your CRM software. This list will help you to know your customer better. Also, the support systems help them effectively communicate with the customers and can help both pre- and post-sale by enabling you, or a customer service rep, to clearly communicate with the customer.
Personalize customer communications
Customers know your brand, they know your products, and they appreciate your service. Now is the time to focus your time and energy on improving the experience for them in the best possible manner. Your relationship with your customers is the key to success of your business. Personalization communication has always been a great experience for the customer also, helps in establishing a strong relationship between two people hence CRM software plays an important role in making it easier to see your customer as a person. Armed with the valuable info, your Sales and Marketing teams can customize emails and other forms of outreach based on customer preferences and behaviours.
Reward or Offering a discount can get you most profitable customers
Offering perks or incentives to your most profitable customers can result in better revenue. It’s the best way by which you are budgeting your time and resources where they have the biggest potential for return.
Let say you are first buyer and when discounts are sent to a first-time buyer, you love the perk! Discounting can be an effective way to bring back customers that haven’t purchased in a while or for their next purchase. Hence, Information gathered in CRM software can reveal which of your accounts are responsible for the most revenue.
Keeping your customers happy helps you improve your company business value. You can gather and manage information on your customers with the help of CRM and also manage activities around customer engagement. That’s why it is said that ‘The more customers you retain, the higher your profits will be’. Hence, customer retention is an area where enhancing the flow of data can deliver big wins. integrating your CRM with other business systems on your own can be complex, costly and time consuming. CRM software will continue to retain customers, keep them happy and grow profits – All without the added expense of acquiring new customers.
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