By: Act! Blog | 1/31/2018
Customer retention is as important for a business as customer satisfaction, if not more. To put things in perspective, a research conducted by folks over at Harvard Business School revealed that when companies improved their customer retention rates by 5%, their profits went up by 25% to 95%.
However, retaining a paying customer over a long period of time doesn’t just happen on its own; it requires periodic re-engagement with the customer. Before we explore the techniques of better customer retention, let’s take a look at what customer retention actually means:
A business is known by its ability to convert and keep a customer. Retention can be defined as the set of actions and initiatives that are taken for the latter. Low customer retention is best explained by the leaky bucket analogy; in this analogy, we look at a bucket with a hole at the bottom; even if you put a hose in the bucket and keep pouring in water (customers), sooner rather than later, the water will seep out of the hole and eventually you will lose all water (customers) unless you do something about the hole (improve your customer retention). Often, small gestures like requesting feedback regularly, sending small and personalised birthday gifts and cards and weekly newsletters can make a customer feel like they belong and that a company cares.
Now that we have established the fact that our businesses need to retain their customers for long-term success, let’s take a look at some of the ways you can keep engaging with your customers to increase chances of retaining them:
Customer relationship management systems make life easy for people who are trying to better the customer retention rates of their companies. It was okay in the brick and mortar ages to come up with marketing strategies on paper but in the modern day, when you have the luxury of owning sophisticated tools why wouldn’t you? A CRM can:
It’s good to read what our views are about Act! CRM software, but it’s better to hear it from people like you who have recently used the Act! CRM and bettered their customer retention:
“We now have a complete picture of an account’s history and current status, so we can exactly tailor the service we offer to each customer’s needs. With 30% of the orders we take coming from existing clients, it shows that our higher level of service is helping repeat business.”
Dasha Skelton, Connect Vending
“With Act! all members of our sales team can find out everything they need to know about a customer at the touch of a button, so relationships flow much more smoothly. Because our customer service is even better, we’re retaining more customers than ever using Act!”.
Angela Banks, Sales Manager at MCJ Casings
If you believe that you need to enhance your customer retention rates as well, then you can start by requesting a free demo for Act! CRM.
Customers will only stick to you when you give them reasons to do so. In this article, we talked about some of the most efficient and proven techniques to enhances your chances of retaining customers and transforming them into long-term patrons. Always remember that the better your re-engagement techniques with your customers are, the more emotionally connected they will feel.