Increasing revenue – it’s a top priority for all organizations. Are you growing your business in the most effective way possible? For many sales teams, improving sales means focusing on customer acquisition rather than retaining the clients they already have. It’s not a secret that keeping existing clients is more cost effective than acquiring new ones. In fact, customer retention can play a huge role in your business’s growth.
Here are a few statistics that show the value of customer retention to your business:
- 80% of a company’s future revenue will come from 20% of existing clients (Gartner Group)
- Increasing customer retention by 5% can increase a company’s profitability by 25% to 95% (Bain and Company)
- Attracting new customers will cost a company five times more than retaining an existing customer (Lee Resource Inc.)
How can your existing customers become long-term sources of revenue? You need a customer retention plan.
This plan should give your organization the ability to identify who these customers are, track their activity and purchase behaviors, sell more to them, and, overall, allow you to build stronger relationships and earn their trust and loyalty. It’s a continuous effort that an entire company needs to be dedicated to.
A robust CRM solution can provide the foundation for your customer retention plan in the following ways:
1. 360-Degree View of the Customer
CRM provides a 360-degree view of your customer’s data – from their purchase history to their communication preference, inquiries, and so much more. When employees have the right information in front of them at the right time, they can understand at a glance how a customer interacts with your business, make more informed decisions, find opportunities to re-engage with customers and provide quality service.
2. Build Loyalty Programs
Retention comes down to earning (and keeping) a customer’s loyalty. Their experience with your company inclines them to purchase or engage with you regularly. CRM data can help identify who these customers are (as they’re likely responsible for a large portion of revenue.) By leveraging this data, loyalty programs can be built that offer rewards and/or incentives to the most valued customers. In turn, a company can ensure that the positive customer experience continues, create the opportunity for referrals, and overall improve brand loyalty.
3. Tailored Offers for Target Customers
Purchase history and buying patterns can be key indicators of the types of offers that will be relevant and appealing to your customers. To create opportunities for repeat purchases and positive experiences, a business can utilize customer data to identify customer interests and align those to discounts or offers, which can ultimately build a stronger relationship with an existing client.
4. Personalized Marketing Campaigns
Personalization and continued communication are essential to post-purchase relationships with clients. Marketing automation is an effective tool for loyalty and customer retention. Automated platforms, such as ClickDimensions, can be integrated directly into your CRM. A business can develop a personalized, automated campaign that provides regular communication with customers to keep them engaged, inform them about product/service changes and promotions, and look for up-sell or cross-sell opportunities.
This is only a short list of ways in which CRM can provide value and support a customer retention plan. If you’d like to learn more about how a CRM solution, such as Dynamics 365, can improve customer retentions and increase revenues, get in touch with us today! Contact Patrick Renier at email@example.com or 440-565-0245.