Increasing Your Profit Through Customer Retention
The goal for every business owners out there is to grow their business. Growing your business means more profit for you, which is why a lot of business owners use CRM Systems to gain new ones. What these people don’t notice is that their current customers can also be their key to increasing their revenues.
Most business owners tend to focus more on acquiring new customers and turning leads into customers. Once the lead has made the first purchase, they will immediately turn their attention to the new ones. Completely ignoring the importance of customer retention and how much this can increase their profit.
Why Should You Improve Your Customer Retention Strategy?
Increase Conversion Rates
Customers who have bought from you already know what you’re offering as well as the quality of the solution you offer. On the other hand, it’s easier to predict what your customer wants from you since you already have their information in your CRM System. Which means you already have their trust and since you already know what your customers want, giving them the content and solution that they want is easier.
Lower Marketing Efforts
Your customers are the people who have bought from you. They already know how you deal with your customers as well as the quality of the products that you offer. This means that you don’t have to exert a lot of effort in convincing them why they should choose you.
Your customers already know about your price range, contrary to your new ones. You have already established a good relationship with your customers. This makes it easier to convince your customers to buy more from you through cross-selling and up-selling.
Save Marketing Cost
We all know that acquiring new customers can be pretty costly. From luring your leads into convincing them to buy from you, new customers can be quite costly. Old customers don’t need a lot of convincing since they already bought from you. They know who you are and with a little cross-selling and up-selling, you can get your customers to buy from you.
How To Improve Your Customer Retention Strategy?
Before you start planning out, you have to make sure that you already have a CRM System such as Infusionsoft by Keap. You cannot gain your customer’s trust without having to communicate with them. There’s no better way to talk with your customer than to give them relevant emails through marketing automation.
CRM helps you gather information about your customer, keeps them in a cloud (especially if your CRM has a Cloud Integration), as well as recording how much your customer trusts your brand. However, be reminded that your CRM is just a mere tool and at the end of the day, it will be you who will be communicating with your customers. Your business’ success is because you made it that way.
Now, if you have no idea how to start in your customer retention management strategy, we have listed down a number of strategies that can help you get started.
Here are 3 Customer Retention Strategies That Can Increase Your Profit:
Pay Attention to Signs of Churning
One way to retain your customers is to watch out for any signs of churning. Customer churning means your customers have stopped making business with your brand. Now, to prevent this from happening you have to watch out for any signs of churning such as declining interaction with your page and emails.
Think of your business. Now think of a customer and name her Samantha. Samantha had been purchasing your products, and even availing on the services you offer, for about 6 months now. You have noticed that in the past 2 weeks, Samantha’s interaction with your website is dropping. Aside from that, she doesn’t seem to be engaging with any of the emails you sent.
The best thing to do is to regain Samantha’s attention through having her to go through a re-engagement email campaign. With a CRM System, you can easily do this especially if you already have a mailing list for your contacts that are no longer engaging with the emails you sent.
Thank Your Customers
Customers like it if you acknowledge their efforts to stick with your brand and there’s no better way to show your appreciation but to create loyalty schemes and reward systems. With your CRM System, you can easily create a personalised scheme by reviewing what your customers prefer.
Let’s say you are selling coffee beans online. Now, you have noticed that your customer Bruce have been buying a bag of your Arabica Coffee Beans every 2 weeks. You want Bruce to be buying a bag of Arabica more often than once every 2 weeks, so you had Bruce to go through your loyalty scheme. You have him a 1 Bag of Arabica coffee beans if he’s able to buy 4 bags of coffee beans in 1 month.
Certainly, Bruce will want to buy 4 bags of Arabica coffee beans to get that 1 free bag. Not only are you able to make Bruce happy with the freebie, but you were also able to increase your profit. You can create a loyalty scheme by offering discounts and special sales. If you appreciate your customers, they will surely return the favour to you.
Communicate with Your Customer
The best way to retain customers is to communicate with them. Which means that even if your customer has made their first purchase, you have to follow them up, and talk with them. Think of your customers as your friend who moved to a different city.
If you don’t talk with this friend after they moved away, do you think you will be still as close as before? No. Remember, your customers are what’s keeping your business floating, they keep your business alive. It’s just right for you to chat with them, however, keep your follow ups and communication in moderation or else you’re only going to annoy them.
Customers who already bought from you are going to buy more from you. So, if your current focus is to acquire new customers rather than nurturing your old ones, it would be better if you consider your old ones important. Old customers buy more than those of the new ones. And no matter what happens, never forget to talk with customers who are showing signs of churning as well as those who don’t. Remember, your customers are the ones who keep your business alive.