{"id":22413,"date":"2021-03-16T13:57:42","date_gmt":"2021-03-16T08:27:42","guid":{"rendered":"https:\/\/www.techjockey.com\/blog\/?p=22413"},"modified":"2025-04-22T13:33:50","modified_gmt":"2025-04-22T08:03:50","slug":"how-can-crm-help-with-customer-retention-strategies","status":"publish","type":"post","link":"https:\/\/www.techjockey.com\/blog\/how-can-crm-help-with-customer-retention-strategies","title":{"rendered":"How Can CRM Help with Your Customer Retention Strategies"},"content":{"rendered":"\n
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.<\/p>\n\n\n\n
In a study conducted by Microsoft, it\nwas found out that almost 60 percent of customers will switch brands in case\nthey get poor service. Imagine losing more than half of your customer base\nbecause of poor service! This grim scenario can be easily prevented by using a\nsuitable CRM tool. <\/p>\n\n\n\n
Customer Acquisition Vs. Customer\nRetention<\/h2>\n\n\n\n
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. <\/p>\n\n\n\n
Existing Customers Spend Almost 70% More Than New Customers.<\/strong><\/p>\n\n\n\n
Given that existing customers spend\nalmost 70% more than new customers, it is advised that you direct more\nresources towards improving your engagement techniques as it can significantly\nimprove your profits by almost 4 times. <\/p>\n\n\n\n
<\/span>Why Do Customers Leave a Company? <\/span><\/h2>\n\n\n\n
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.<\/p>\n\n\n
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1. Feeling that the Business Does Not Treat Them as Individuals<\/strong>: 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 feel that you cannot provide them more refined recommendations.<\/p>\n\n\n\n
2. They Lose Interest After a Bad Experience<\/strong>: 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.<\/p>\n\n\n\n
3. You Are Not Reaching Out to Them Effectively: <\/strong>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.<\/p>\n\n\n\n
4. Your Competition Laps Up Your Customers<\/strong>: Modern-day companies fight each other on the grounds 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 that have lost significantly due to customer switching in the past.<\/p>\n\n\n\n
5. As a CEO, You Are Not Proactive<\/strong>: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.<\/p>\n\n\n\n
Why Is Customer Retention Critical for\nYour Business? <\/h2>\n\n\n\n
A customer begets another customer.\nThis is ascertained because almost 40% of customers will share their\nexperiences with their acquaintances. And a very few of them are likely to\nrecommend a company which provided bad service. <\/p>\n\n\n\n
The importance of word-of-mouth\npublicity in today’s time cannot be denied. The better is engagement activity,\nthe better would be the customer interaction. This would further lead to a\ngrowth in your customer lists organically. <\/p>\n\n\n\n
<\/span>How Does CRM Software Help with Customer Retention?<\/span><\/h2>\n\n\n
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CRM software plays a critical role in delivering outstanding customer service. Most CRM solutions offer a dashboard and a 360-degree view of your customers. Other than these, they also help your organization out in the following way.<\/p>\n\n\n\n
1. Ensuring a Seamless Onboarding Program<\/strong>: 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.<\/p>\n\n\n\n
2. Utilising Customer <\/strong>Surveys<\/strong><\/span>: Zendesk survey found out that 50% of customers prefer parting ways with your business if they encounter a bad experience. The only way to avoid this is to provide them with a personalised experience through customer surveys. CRM software helps run surveys and analyse customer sentiment effectively.<\/p>\n\n\n\n
3. Providing a World-Class Service<\/strong>: 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.<\/p>\n\n\n\n
4. Using Service Level Agreements (SLAs): <\/strong>An SLA is a contract that informs customers about the kind of services you will be providing. Signing an SLA with your customers assures them that you will stand by your word and provide them with a mutually agreed-upon service.<\/p>\n\n\n\n
<\/span>Leadhooper<\/span><\/h3><\/div>\n\n\n\n
5. Managing your CSR Activity<\/strong>: CSR refers to corporate social responsibility. As a company, you should be actively involved in 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.<\/p>\n\n\n\n
6. Planning the Customer Journey Map<\/strong>: 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.<\/p>\n\n\n\n
<\/span>Kylas CRM<\/span><\/h3><\/div>\n\n\n\n
7. Ensuring Personalized Interactions<\/strong>: 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.<\/p>\n\n\n\n
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