There are effective ways to improve customer retention, and there are ways that will cost lots of money in the long run without doing the job. Unfortunately, trying to save money on design and development falls into the latter category. The best ways to retain customers depend heavily on good design, UX and communication. Policies, knowledge and website features are important, but communicating the information is critical. Technology helps B2B companies communicate with their customers on their own terms, which can increase customer satisfaction.

Triage and Focus

It's important to use specific words that attract customers such as "free," "free shipping" and "instant." Focus on communicating the most important facts to each customer. It's also important to nurture the top 20 percent of clients who account for up to 80 percent of sales. [1] The strategies for increasing customer retention include both online methods and personal touches such as newsletters, personal communications, reminders, etc.

It's Cheaper and More Effective to Market to Existing Customers

Many companies spend a lot of their advertising budget to find new customers, and while necessary for long-term growth, new site visitors are always a gamble. Existing customers have already shown interest in the company and its products. It costs less to market to them, and their conversion rates are higher. One Eco Consultancy report found that companies increased their budget for acquiring new customers from 31 percent to 34 percent while decreasing customer retention marketing from 24 percent to 18 percent. [1] The report also confirmed that a 5 percent increase in customer retention can result in a 75 percent increase in profit.

Unfortunately, the approach of increasing the budget to attract new customers is trending in the wrong direction for the greatest marketing success. Companies that grow consistently are the ones that retain their customers at a higher rate. Selling to existing customers is between six and seven times cheaper than acquiring new ones. That's why it's so important to increase customer satisfaction and improve customer retention. Some of the best ways to increase customer retention rates include:

  • Find ways to demonstrate to customers that the company cares about them.
  • Engage customers with creative marketing approaches, automated loyalty programs and special incentives and offers.
  • Build the technology to automate and personalized marketing messages.
  • Choose relevant product recommendations based on customer preferences instead of generic advertising.
  • Integrate CRM software to learn more about customers to automate many marketing options.
  • Keep the company website fresh and interesting with new content, customer-specific displays and customized landing pages.
  • Keep VIP customers by showing them special attention using CRM and analytical insights.
  • Integrated business applications make it possible to tailor the company's marketing approach to each customer.
  • Reward customers who generate the most profit.
  • Follow up on customer service issues.
  • Provide multiple ways for customers to communicate and engage with the company such as social media customer service pages, Live Chat and automated chatbots.

The Best Ways to Retain Customers

It's important to build an appealing brand that resonates with the company's targeted customers. That's part of the challenge of finding new customers--it won't help to attract buyers who have little or no interest in the company because it doesn't stand for something, have a clear concept or share the customer's values. One study found that 64 percent of customers cited shared values as a primary reason for dealing with a company. [2]

Some of the best ways to retain customers include:

Engage Customers Across Channels

  • Customers are impressed with companies that try to engage them in other online forums such as social media. Social media testimonials, customer service pages and brand influencers with big followings can attract and retain customers who share the company's values.

Reduce the Customer's Pain Points

  • Analytics can help companies determine common customer pain points. Friction can develop when a website isn't user-friendly, when prices are too high or the business features don't load and operate efficiently.

Educate Customers

  • It's easy to accept common points-of-view, but they are often inaccurate. Educating customers can convince them to try new products and change their attitudes.

Thank Customers and Provide "Surprise" Reciprocity

  • Customers can be delighted when they're sincerely thanked for their business and/or provided with a surprise reward. That might mean doing the unthinkable--writing a personal letter and sending it by snail mail or offering a substantial discount or gift.

The Impact of Design and Development on Customer Retention

Your best methods of retaining customers include developing the right business strategy and providing user-friendly platform features and efficiencies that delight your buyers and stakeholders. Choosing the right developer can help with the technical issues of integrating all your business applications, designing your site for seamless functionality and personalizing all your marketing. Clarity’s got over 13 years and deployed over 1,300 sites for their clients. Give us a call today, to discuss how we can help with your project.

 

References:

[1] Superoffice.com: Customer Retention: 5 Unique Strategies to Increase Profits

https://www.superoffice.com/blog/customer-retention-tips-with-crm-software/

[2] Helpscout.net: 22 Customer Retention Strategies that Work

https://www.helpscout.net/blog/customer-retention-strategies-that-work/

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