Acquiring new customers is expensive.
According to Bain & Company, it costs businesses about 6-7 times more to acquire a new customer than to keep an existing one. It is a lot more expensive than retaining your current customers and finding ways to keep them happy.
Customer loyalty and retention drive referrals and inevitably, revenue. Customer retention takes time to bear fruit and it is certainly worth investing your time and effort into it.
Here are three ways a CRM can help you increase customer retention:
1) Understand customer needs and preferences
A CRM is not just a place to put your customers’ contact information. It can tell you a lot about a customer’s behavior, preferences, buying patterns, and their history with your company. By having this type of data right at your fingertips, you can better understand your customers.
When you understand your customers at this level, it will help you to better identify their needs. You can anticipate things that they may need right now or in the future and can upsell and cross-sell more effectively, increasing overall profitability.
2) Deliver highly targeted promotions/marketing campaigns
With CRM, you can see all data about your customer’s buying behavior and history with your company. You can create alerts when a customer’s birthday is coming up so that you can offer them a 20% discount on new products that might interest them.
With robust reporting capabilities, you can use CRM to track important metrics to see the success of each marketing campaign and make adjustments to make them more effective. You can even track how people respond to your email promotions by viewing open rates, bounce rates, see which links they’ve clicked, and much more. This will help you to do more of what is working and quickly stop what’s not.
3) Improve overall customer experience
Like most of us, you are probably busy and hate having to stay on the phone to repeat the same information over and over when dealing with the same company. A CRM can hold previous history of emails or issues that a customer may have had in the past and a customer service agent can quickly review and gain insight on why a customer might be calling now.
When your service agents have quick access to CRM, they can provide quick, efficient, and highly personalized service that will make anyone happy.
Use CRM to surpass your customers' expectations. Turn your customers into loyal customers by understanding their needs and preferences and delivering personalized service each time.
If you’d like more information or tips on how you can increase customer retention by using CRM,
by Atum Corporation