Acquiring new customers is five to 25 times more expensive than retaining existing customers. What is your company doing to increase customer retention?
Customer satisfaction and loyalty significantly impact a company’s client retention abilities. The realization that a higher customer retention rate can increase profits by 25 to 95 percent is a strong motivator to strengthen this facet of your business.
In this article, we’ll examine five factors that you can focus on to reduce customer churn and keep customers longer.
Address these 5 Factors to Increase Customer Retention Rates
The costs involved in helping return customers declines over time. Another bonus is their likelihood to refer others. When the following factors are not addressed though, retention rates are dismal at best and sales teams are often under constant urgency to sign on new clients.
- Customer Expectations
Establishing clear expectations with your customers is an ongoing process that should begin during onboarding. Position your organization to not only meet expectancies but to over deliver by placing the bar lower.
- Customer Feedback
Survey your customers regularly andas part of your offboarding process. You’ll learn what makes your current customers happy (and what you should do more of) and what customers don’t like.Use the information you get to make improvements. Customers want to know that you’re listening to their feedback. Ensure that it makes its way from the customer service department to someone who will take action.
- Communication Cadence
How often do your clients want to hear from you? Use email social media metrics as a guide and pay attention to click-through-rates and open rates. Don’t be afraid to try new things. Remember, it’s easy to become a nuisance, especially when it comes to email.
- Customer Service
According to a Zendesk survey, 91% of people would use a knowledge base if it met their needs. By offering anticipatory service in the form of forums or self-help web pages, a company can efficiently provide customers the help they need. Online assistance can also lower costs by reducing the need for assistance from employees.
- Relationship Management
Although it may be simpler to deem one person as the main point of contact for each client, it’s not an optimal situation for customer retention. If your client has a friendly relationship with a specific employee and that employee leaves the company, there’s a chance you can lose the customer. Ensure everyone forms a relationship with your customers to prevent any adverse impact of employee turnover.
Returning Customers are More Profitable Than Locking in New Sales
Serving return customers is more profitable than securing new deals, especially in the B2B space with mounting acquisition costs. Consider these factors to support client retention and bolster your bottom line.
Does your organization struggle with customer retention? Schedule an appointment with me to discuss how Jack Belford of FocalPoint of Illinois can help you find out what’s causing your customers to shop around for other options.