Customer retention management is about keeping customers interested and investing in what your company has to offer.
There is a very special facet to talk about when it comes to Customer Experience Management (CXM) and that is Customer Retention Management (CRM). Don’t become confused by the abbreviation CRM. You may not confound it with Customer Relation Management.
CXM, CRM, but not CRM – am I kidding? Or am I tired because it’s 5.25 A.M? I don’t think so, but of course, man can be never sure about it. So let’s move on and read some content I curated just for you about the topic.
Bottomline: CRM will pump your profit
In fact, retaining current customers is 80% cheaper than buying new ones. So, without strategic efforts to retain customers, your company can and will spend more money trying to attract more customers permanently. But how do you attract potential customers to your business, convert them, and then retain them?
Customer retention management: Rationale
Remember that fostering long-term customer relationships tends to prove extremely valuable on both sides. Your customers benefit from the convenience and peace of mind of no longer having to shop around, and you will be able to grow your enterprise along with your customers. Repeat customers are also more likely to refer your service to others, as they know better than anyone how your company delivers on its promises — which saves your team precious time, energy, and money while boosting your enterprise’s reputation. Bonus: repeat customers usually spend more, further demonstrating the value of retention.
Here are a few virtues I consider the be very true not just for Customer Retention Management but for business in general. You may also want to read about the Six must-have skills of the future.
Focus on relationships, not transactions
While tracking purchases and revenue is an important element of customer retention management, it is even more valuable to cultivate a company culture that revolves around what your team can do for your customers. It is never just about what your customers can do for you. Ensure that your team’s number one priority is maintaining and improving the customer experience.
Value versatility and scalability
Your strategy will naturally need to evolve as you gain greater insight into your customers’ needs, which also tend to change over time. Your team needs to be ready to adapt to these changes, whether they are gradual shifts or sudden pivots. Find ways for your team to not only make changes — such as creating new campaigns or altering onboarding steps — but also to measure the results of these changes and continue to adapt as needed. Your strategy and the technology that supports it should be scalable and able to support your team’s changing internal goals.
Your team should have standard processes in place everything from adopting and nurturing new customers to identifying risk factors and preventing churn. Equipping your team with a CS solution that can further streamline these processes and facilitate clear communication ensures efficient operation
Remember that retention is a journey, not a destination
A key component of retaining customers is being able to see exactly where they are in their customer journey at any given time. Utilizing technology that provides easy access to this information is important — but even more important is ensuring that your team understands this information in context. Customers do not remain at a fixed point once you have established a relationship, and the customer journey is not linear. Your team should always be aware of not just where your customers stand but also where they are headed — and how to ensure their journey does not lead them out the door.
How to get started
It’s easy to become overwhelmed by the complex topic of Customer Retention Management. But don’t do the ostrich! Just start with your unsatisfied customers and two simple questions.
Reaching back out to Detractors will help you identify highly actionable insights with a wide-spread impact on your retention rates. In your follow-up, ask questions such as: What is the top reason the customer was not able to reach their desired outcome? What changes to your product would have helped them achieve their desired outcome?
Identifying the gap between what Detractors needed to achieve and what they actually achieved is like opening a buried treasure chest of actionable data insights. With this feedback, product and support teams can work with loyal customers to ensure they’re not facing the same issues, while marketing and outreach teams can help guide new customers through processes that may not be meeting their expectations.
In a few cases, Detractors will appreciate that their feedback has been taken seriously and will reevaluate their decision to try another platform. But don’t rest on your laurels — frequent follow-up cycles will help you confirm that retention rates continue to rise as you implement product changes.
If you have any questions – you are welcome all the time! And of course, by sharing this article you will support me a lot spreading the word.