All the hype about lead generation and conversion leads business owners to think the hook is all they need. After all, once you snag the big fish, he is yours. Right? Unfortunately, this faulty thinking causes many businesses to lose customers.
Customer retention strategies prove equally, if not more, important than baiting new customers. Customer Relationship Management (CRM) provides a system for managing current customer interactions and maximizing those relationships.
Establishing trust and confidence with consumers brings them back. Building this relationship matters to your business because this source of revenue is the easiest and most stable.
Yes, customer loyalty reduces your expenses. According to a Bain & Company report, hooking new customers proves six to seven times more expensive than retaining existing customers. Plus, less time is spent identifying and convincing prospects that your product best suits them.
CRM's can also help automate your internal processes, allowing you to reduce hiring costs. Find out how here.
Customer loyalty increases profits. A five percent increase in customer retention yields a 75 percent boost in profit. Repeat customers purchase 30 percent more product than first time buyers. And, returning consumers spend three to seven times more per visit.
Repeat sells, cross-selling and up-selling become possible with an established relationship. Marketing Metrics suggests that selling to your customers is 50 percent easier than to newbies. With 80 percent of your future revenue dependent on 20 percent of these buyers, it makes sense to invest here.
While the bottom line of customer retention is revenue, customers do not want to feel like the catch of the day. They want to know you care about them as individuals. Product alone fails to keep customers.
Providing a great customer experience (CX) results in great customer retention rates. The CX includes consumer opinions or feelings toward your brand and the value you provide. Every business-customer interaction (or lack thereof) impacts the experience
In fact, 42 percent of businesses know that improving the CX improves customer retention. Thirty-three percent invest in CX to increase customer satisfaction. And, 32 percent look to cross-sell and up-sell. All three motivations find help with CRM.
CRM strategies improve CX, breed loyalty and capitalize on the profitability of returning customers. While 84 percent of companies want to be leaders in CX, only one of five deliver. CRM raises you above these statistics.
By gaining insight into consumer behavior, CRM data enables you to adjust your retention strategies and better meet customer needs. Following up with VIP customers, tailoring special offers, personalizing interactions and rewarding your highest spenders become possible with CRM.
CRM tools also help win back former customers. Drip campaigns and other automated strategies keep your brand and products in the consumer’s mind. Furthermore, analyzing consumer reasons for leaving gives you bait to reel them back.
Contact TouchConvert today to learn how to better build customer relationships with CRM.