In the pursuit of business expansion, many companies focus on customer acquisition to the detriment of their existing customers.
Yet, studies show that good customer retention not only results in more frequent and larger repeat orders, but also increases new customer acquisitions due to positive word-of-mouth.
Many sources provide long lists of CRM practices and case studies, but we have condensed these content into an overarching top 3 strategies for customer retention.
1. Give regular updates on new developments
The best way to engage your customers is by giving them updates on new product features and other useful content, for example tutorials on various ways to use your product.
Such content increases brand awareness and builds confidence in your customers that your organisation is fully capable of catering for their requirements.
2. Resolve complaints swiftly and use them to improve your business procedures
If you receive complaints from customers, it’s best to resolve them swiftly as complaints which were resolved satisfactorily resulted in 80% chance of a repeat purchase, versus a 40% chance of repeat purchase when a complaint was not handled well.
Don’t fear complaints or negative feedback – instead, study them to see what’s missing from your products/services which are critical to customers. This will enhance your organisation’s competitiveness and increase profit growth in the long run.
This SaaS cloud solution minimises your upfront ERP investment and can be scalable to hundreds of users when your company grows.
3. Reassess your organisational culture
Our last point may come as a surprise, but in the midst of chasing profits, it is also crucial to ensure that your employees feel respected and valued. Not only does this result in a more pleasant workplace, it also increases their motivation to perform.
Motivated employees try harder to close sales and are more willing to go the extra mile, which helps them develop stronger and more genuine relationships with your customers and therefore increases customer retention significantly.
An important tool to help implement these strategies and achieve your goals is a CRM solution.
CRM software helps you record, analyse and understand your customers, using metrics such as purchase history and 360-degree customer dashboards. It can also help you respond promptly to service issues through alerts, ensure you identify repeated issues, pinpoint areas for improvement and develop effective incentive schemes.
Contact us anytime to understand how SAP Business One CRM can help improve your customer retention.