No matter what industry you’re run, you always need a good relationship with your customers, especially with your present customers. It is because a healthier relationship with customer adds an advantage for maintaining the image of a successful brand. This is another fact that we cannot refuse, and that is competition among businesses. Thus, we need smart customer services that directly connect your success to customer happiness and bring you to the forefront of your competition.
An effective customer retention management system helps businesses to maintain a good relationship with the customer. It facilitates the process of engaging existing customers to continue buying products or services from your business. A higher customer retention rate can lead to enhanced customer loyalty and encouragement and deliver higher business revenue.
Why Experts Recommend Customer Retention
Many experts and business entrepreneurs believe and suggest startups, small, medium, or big enterprises that instead of gaining market by new customers, it is better to strengthen your customer retention. This will eventually deliver good customer services and facilitates better sales cost-effectively. According to Mckinsey’s study,
- Acquiring a new customer is 5-25 times more expensive than retaining an existing customer.
- A 5% increase in customer retention will increase profits by 80%.
- In B2B business, 51% of customers do not like to do any deal with any company after a one-time negative experience.
- 64% of people prefer customer service over price during purchase.
- 77% of customers refer your business to their network after having a positive experience.
Reasons Why Customer Retention Is Essential To Your Brand’s Success
Customer retention is the process of keeping current customers and creating a strategy to attract new customers through current customers. This approach improves the profitability of your business. Here are some reasons that support customer retention.
Save money
Acquiring a new customer is always cost consuming process rather than retain the existing one. An existing customer is already aware of your product, services, and other details. It saves your money and reduces your marketing expenses.
Get repeat profit from repeat purchases and customers
A loyal and satisfied customer is more likely to buy goods and services from the same company. According to the survey, existing customers are 50% more likely to contribute to the benefits of buying new products and repeat. An existing customer trusts your business and believes that you take care of his needs. This way, customer retention plays an important role.
Get new customers through current customers
This is the most cost-effective way to advertise your product and services. No cost is involved in this process. If you are assisting your current/existing customers in a planned way and they are satisfied with your service, they can suggest your product to others automatically. This way customer retention management helps businesses to attract new customers and enhance overall revenue.
Retained Customers Will Provide Valuable Feedback
Every business needs to value the feedback coming from the existing customers. As per the survey, 97% of the customer trusts in those companies/products that listen to their feedback and work accordingly. Thus, it is necessary for all businesses to sincerely work on customer feedback. This approach will not only enhance customers’ trust but also enhance profitability.
Get premium prices from previous customers
Valid and long-time customers mostly come to you for the trust that you have built through your quality products and quality services. Thus, they easily pay you a fixed price for your services. Customer retention management helps the business to maintain this trust between the company and the customer.
Final Words
Even though acquiring new customers is a sign of business growth but losing customers is extremely expensive. Customer retention management not only retains customers but also to keep them happy and grow profits. For any help regarding the customer retention solution, you can contact us. We will happy to serve you our best.
