Did you know that nearly 80% of your future profits will just be coming from the 20% of your existing customers?
Did you know that the probability of selling to an existing customer is 60-70%, while the probability of selling to a new prospect is 5-20%?
And, did you know that It costs 5% more to acquire a new customer than it does to keep a current one?
Clearly, failing to retain customers can severely affect your business and its profits. The best way out will be to find the leaks in your customer retention funnel and seal them.
And as you try to do that, this blog post will help you.
So, buckle up. Here’s the art and science of customer retention broken down for you in three simple tips.
1. Look for the Early Signs
In most cases your customer may not just wake up and decide on withdrawing their contract (if any) with you.
Generally, it will be a process. May be a series of events where they faced disappointment or felt invaluable. And luckily, it’ll mostly be evident. All you need to do is catch these signs. Identify their behaviour. Observe their purchase patterns. Product usage stats. And their customer service enquiry records.
This will help you identify the customers that you need to approach for a follow up.
2. Your Customers Love Special Offers
Whether you are targeting a new prospect or an old customer, a special offer can do wonders for your campaign.
One of the main reasons why customers leave a brand is the realization that the brand doesn’t value them much. By crafting personalized offers especially for an individual customer, you can simply dodge this problem.
All you need to do is find out as much as you can about your customers.
For this you can use a CRM software. It’ll let you view a customer’s purchase history. With this knowledge you can find out the type of products and services a particular customer is interested in buying.
With this you can tailor your offers for all your customers who haven’t bought from you in a while.
3. Customer Rewards Can Help You Build Brand Advocates
Have you ever felt like continuing using services from a brand after getting any sort of rewards?
69% of customers say their choice of brand is influenced by the reward points that a brand offers.
This simply means that brands that offer customer rewards are appreciated more by customers than brands that don’t. You get the point?
It’s evident that offering customer rewards can easily help you earn and retain customers. You just have to make sure your rewards are really of use to them.
And for making that happen, you can consider using a CRM software like Salesforce. With a number of features and the continuous Salesforce testing processes, the CRM makes customer retention way easier than it would normally be.
Final words
Keeping existing customers close is one of the major marketing goals for most businesses.
However, at times, they blow up, making one mistake or the other. This causes their customers to leave. Thankfully, it’s not the end of the world. In this post, we mentioned three of the simplest tips that can make customer retention easy for you.
Hopefully, this was helpful.