An unspoken rule that all successful businesses follow is that the customer is always right! But ask yourself honestly, how many customers feel that the service or product they have opted for is right for them.
In a study conducted by Microsoft, it was found out that almost 60 percent of customers will switch brands in case they get poor service. Imagine losing more than half of your customer base because of poor service! This grim scenario can be easily prevented by using a suitable CRM tool.
Customer Acquisition Vs. Customer Retention
Most Indian businesses get wrong because they focus too much of their resources on acquiring new customers and too little on engaging with existing customers. As per a recent study, your business might end up spending up to 5 times more than your stipulated budget on acquiring new customers.
Existing Customers Spend Almost 70% More Than New Customers.
Given that existing customers spend almost 70% more than new customers, it is advised that you direct more resources towards improving your engagement techniques as it can significantly improve your profits by almost 4 times.
Why Do Customers Leave a Company?
Salesforce conducted a research where it was found that close to 65 percent of customers expect businesses to know their unique demands. What must be the reason for them to part ways with a business? We tried to found out.
- Feeling that the Business Does Not Treat Them as Individuals
Almost 50% of customers would purchase a product even if they didn’t intend to do so initially solely based on personalised recommendations. A customer will usually walk out if he/she feels that you cannot provide them more refined recommendations.
- They Lose Interest After a Bad Experience
During the above-mentioned Salesforce research, it became evident that close to 90% of customers will come back to buy your products if they were provided a positive experience the first time around. This means that the experience provided to each customer should be as unique as possible so that you can minimize the dropout rate.
- You Are Not Reaching Out to Them Effectively
One of the most prominent reasons your business might be losing clients is that you cannot communicate with them effectively. Close to 60% of customers aged 50 and above prefer to communicate face-to-face, while the younger generation prefers text or email communication. This implies that your business must be omnipresent when it comes to channels of communication.
- Your Competition Laps Up Your Customers
Modern-day companies fight each other on the ground of user experience. Two-thirds of companies existing today value customer experience as the most valuable asset than only 36% in 2010. The customer means everything, and most companies will go to great lengths to keep them associated with their services. If you don’t, you might feature in the list of companies who have lost significantly due to customer switching in the past.
- As a CEO, You Are Not Proactive
Close to 65% of companies with customer-oriented CEOs believe that they are more profitable than their competitors. If you, as a CEO, don’t take a proactive approach to address your clients’ expectations, your customer-oriented strategies won’t have enough impact.
Why Is Customer Retention Critical for Your Business?
A customer begets another customer. This is ascertained because almost 40% of customers will share their experiences with their acquaintances. And a very few of them are likely to recommend a company which provided bad service.
The importance of word-of-mouth publicity in today’s time cannot be denied. The better is engagement activity, the better would be the customer interaction. This would further lead to a growth in your customer lists organically.
How Does CRM Software Help with Customer Retention?
CRM software plays a critical role in delivering outstanding customer service. Most CRM solutions offer a dashboard and 360-degree view of your customers. Other than these, they also help your organization out in the following way.
- Ensuring a Seamless Onboarding Program
HubSpot states that a humongous 93% of customers will return to doing business with you if you offer a great experience the first time around. Keep in mind that your job is not done after you acquire a customer. Putting efforts to make their onboarding engaging with CRM software can lay the foundation of a long, fruitful association.
- Utilising Customer Surveys
A Zendesk survey found out that 50% of customers prefer parting ways from your business if they encounter a bad experience. The only way to avoid this is to provide them a personalised experience with customer surveys. CRM software helps run surveys and analyse customer sentiment effectively.
- Providing a World-Class Service
HubSpot’s research showed that 33% of customers get frustrated when they are asked to hold. A similar percentage of customers feel the same when they talk to multiple executives. So now you might realise the importance of creating an experience that customers remember for a lifetime.
- Using Service Level Agreements (SLAs)
An SLA is a contract that informs the customers about the kind of services you would be providing. Signing an SLA with your customers assures them that you would be standing by your word and provide them with a mutually agreed upon service.
- Managing your CSR Activity
CSR refers to corporate social responsibility. As a company, you should be actively involved with community issues and give back to society. One of the plus points of this approach is that it will build a positive brand image in potential customers’ minds.
- Planning the Customer Journey Map
The journey map of a prospective client starts with the day you send them a proposal and ends with the day they are onboarded. In between, you can push for providing each customer with a unique experience, even if they choose not to do business with you.
- Ensuring Personalized Interactions
You might have employed the best chatbot on your site, but to date, most customers prefer talking to a human agent in their first few interactions with your business. As per a recent study, only 16% of the customers preferred talking to a chatbot. So, it’s advised that you frequently conduct personalised interactions with your customers where a live agent takes up all their queries.
Customer relationship management can be the key that makes your business utterly successful. Remember that customer engagement and regular services play a pivotal role in attracting customers to your business again and again. Choose the best customer relationship management organisation for your business today from techjockey.com!