Competition is growing with each passing day. In the age of startups, more and more entrepreneurs are trying to make it big in the world by promising to deliver the next big thing. Irrelevant of how substantial their claims are, people are being treated to a long list of choices when they are looking for a product or service that fits their needs.
A business works to obtain more customers and provide value to them in exchange for more sales and revenue. But if their customers are offered a different product and it seems to give more value to them, they will not hesitate to change loyalties and move their business to a competitor. To prevent this from happening, businesses must look for ways that lets them keep their customers happy – this is where Customer Relationship Management (CRM) fits into the picture.
You’ve probably heard of the now-common adage, “It’s much more expensive to acquire a customer than to retain one.” CRM can play an important role in reducing the costs associated with customer retention, as it provides tools that make it easier to proactively interact with existing customers and deliver trust and transparency on an ongoing basis.
Some of the ways in which a CRM software service can be utilized to boost the customer retention rate are:
1. Locate your profitable customers
It is not practically possible for you to retain every single customer that has purchased from you. Moreover, attempting to retain customers who have very few purchases and are unlikely to do more business is eventually detrimental to profit growth. This is why it is imperative for you to identify the customers that are bringing in the most business, and focus your efforts on retaining them instead.
A CRM software service studies the customer data by scanning for certain behavior metrics like purchase history, purchasing power, frequency of purchases, etc. to determine the customers that are more useful to retain.
2. Proactively engage with the customers
CRM systems come with automation tools that can help you schedule the delivery of automated messages and responses to your customers. This is useful for following up with customers who have lost contact with you, as well as for being proactive to maintain your frequent ones.
By integrating CRM with your marketing automation operations, you can send personalized e-mails that provide relevant news articles, events and deals based on the customer’s data and behavior. You can also schedule automated follow-ups for products that are nearing their expiration date or are due for a system check-up.
3. Deliver targeted messages and offers
By building up your customer database with the essential details, you can obtain more insight into a customer and their preferences. This allows you to create unique messages and tailor-fit your offerings for them, which sets the right business image in their mind and makes them more likely to come back for repeat purchases.
The CRM software service is essential for studying the customer behavior and obtaining that insight, such as how likely the customer is to buy a new product or how an interested prospect might change their answer when they are offered a particular feature in the product. On a broader scale, CRM can also create special, relevant messages for specific market segments with similar tastes and preferences.
4. Create loyalty programs
Your customers are special for you, so it’s only logical for you to treat them in the same way. Give them a reason to keep coming back to you, so that they do not move their business elsewhere when a slightly better opportunity comes along.
With the help of the CRM customer database, recognize your frequent customers and offer them loyalty programs that include exclusive offers, discounts, promotions, or subsidies. This lets your customers know that you care about them and builds a trusting relationship.