In the never-ending goal of gaining new customers and maximizing revenue, sometimes exiting clients are ignored. However, isn’t it true that it is cheaper to maintain an existing customer than to acquire a new one? So then, why not focus on customer retention?
Nothing is more important than your customer when it comes to your company’s growth and profitability. A consistent focus on your customer enables you to respond to customer needs and establish a customer relationship. Strong relationships with your customers will drive your business success. Customers don’t want to feel like targets, they want to feel like individuals. Utilizing a good customer relationship management software (CRM) can help to provide a strong foundation that builds mutually satisfying customer relationships.
Here are just 3 ways CRM software can help you increase customer retention:
- Keeping your best customers happy. Clearly the best way to ensure customer retention is to prevent customers from leaving. Paying close attention to your customers will allow you to see the signs of an impending customer departure. This can be done through identifying key variables such as purchase patterns, product usage and service calls. If you are able to see the signals you can then take action to stop your customers before they leave. One way to do this is by running a report of sales for the last six months. Any customers that have not made any purchases may need to be followed up with.
- Implementing targeted marketing. The better you know your customers the more specifically you can target your marketing to their needs. CRM software can give you valuable insight into purchase history so that you can target your offers and make them most appealing and relevant to your customer.
- Offering incentives to your most profitable clients. Use your customer database to see which customers are responsible for the most revenue. Use this information to offer incentives or perks to your most profitable customers. This way you are budgeting your time and resources where they have the biggest potential for return.
Do you have a CRM process in place?
Check out our blog: Your Guide to an Effective CRM Process