How To Retain Our Existing Customers

Let these facts sink in –

  • Repeat customers are more likely to spend 33% than new ones (RetailActive)
  • A 5% increase in customer retention can increase profits by 25-125% (Gartner Group)
  • 68% of customers leave because they perceive you are indifferent to them – (Customer Retention Report)

Customer retention is a tricky subject and it is no secret that it is always cheaper to retain clients than to find new ones. While many companies feel that if their products and services are great, their rate of customer retention will be high. But this is actually far from correct.

One of the main reasons for customers to stay with the company is good customer service and the company’s involvement in the customers’ life. Gaining loyalty is a continuous process and one that can be far more profitable than any other.

Having a great customer retention program can not only reduce costs but also increase profits. It can help you identify, track and sell more to these customers who are willing to stay your long time customers and nurture them more. 

With the help of a Customer Relationship Management (CRM) system, the ‘relationship’ part of the process can be emphasized on and handled in a way that it leads to better customer engagement and conversion rates, lower cost of marketing and higher chances of sale.

  • According to Bain and Company, a 5% increase in customer retention can increase a company’s profitability by 75%!
  • Gartner Group statistics tell us that 80% of your company’s future revenue will come from just 20% of your existing customers.
  • According to Marketing Metrics it’s far easier to (about 50% easier) sell to existing customers than to brand new prospects.

Tips to retain existing customers

Understand your customers
With the help of a CRM, sales teams can easily gather information about their customers by searching through the integrated social media features and find out details that will help you ‘sell’ to them better. Personalizing conversations and offers for the customer will make them feel like you take the time to know what they want and you will also be able to nurture them for a sale better.

Schedule timely follow-ups
A CRM can help you schedule timely follow-ups that are necessary or else your customers may feel left out and neglected. Sales calls, meeting, email blasts, messages… schedule something in a stipulated amount of time so that customers don’t forget about you or feel forgotten.

Communicate efficiently and regularly
With the help of integrated features like email newsletters, sales reps can keep in constant touch with the customers and keep sending them personalized offers that are helpful to them. Use the CRM system to invite them to events, remind them to complete orders or even ask for feedback about the products and services you offered.

Reward most profitable customers
Make your customers feel special by rewarding ones who have remained loyal to you and use your products and services regularly. Send them coupons and discount offers to make even more sales.

A CRM software can help you differentiate between customers who add to your profits and those who don’t. This differentiation will help you in ensuring that you give the right amount of attention to the customers who are loyal to you, while also telling you which need more nurturing, in turn helping with customer retention.

Alertforce CRM has several features and functionality to help you retain your clients and nurture your sales prospects.

 

Blogs

Copyright © 2015 Alertforce. All rights reserved.