A lot of new businesses prioritize customer acquisition, and that makes sense when building a reputation from the ground up. But it’s also smart to set aside time to charm every one of those customers so they have reasons to return.
Many businesses rely on repeat customers to achieve lasting success. Bain & Company and Harvard Business School’s data evaluation found that a 5% customer retention rate has the potential to increase profits by as much as 95%. Such impressive results require more than optimism, though.
To nudge your retention rates upward, you’re going to have to make every interaction with every customer count. One of the best ways to entice existing customers is via a customer relationship management (CRM) program.
What is Customer Relationship Management?
CRM is a catch-all term that encompasses all the processes, techniques, and tools a company uses when interacting with their customers and clients. CRM strives to improve your relationship with customers, resulting in the satisfaction needed for future profitability.
Usually, this acronym refers to customer retention management software specifically thanks to its high adoption rates. Modern technology makes automating processes so much easier, saving you a ton of time and effort.
Some benefits of customer retention in CRM:
- Gain a clearer picture of who your customers are and their interests
- Access various tools that improve communication across channels
- Provide customers with solutions that improve their experience
- Learn what’s been working well and what needs improvement
- Personalize the customer experience for different target groups
- Consolidate everything in one place, providing the full picture
Combine these together along with implementation of customer feedback, and your competition will have good reason to reevaluate their own customer retention methods.
What is a Customer Retention Strategy?
Customer retention strategies aim to turn one-time customer purchases into repeat business. Ongoing transactions from loyal customers can add up to significant returns. That’s why coupling a customer acquisition strategy alongside a customer retention strategy is essential to revenue growth.
According to an Invesp report, 89% of companies believe a top factor for customer retention is a positive customer experience. That means the cornerstone of success lies within your ability to keep your customers happy throughout their interactions with your business.
Picking strategies that match your business objectives makes it easier to reach your goals. These strategies may include improving customer communication, simplifying every interaction, and offering shopper incentives.
How Customer Relationship Management and Customer Retention Go Hand-in-Hand
It takes an unrealistic amount of luck for things to always go your way with minimal effort. Relationships, especially, require maintenance to last into the future. To keep customer retention from falling, you must recognize the significance of your customer relationships and nourish them.
CRM and customer retention are inescapably intertwined with your business performance. Once you recognize you can’t have one without the other, you’re ready to improve the customer journey with a compatible CRM system that optimizes the entire process.
