An estimated $62 billion is lost each year by American companies because of poor customer service. Additionally, a mere 5 percent increase in customer retention can then result in a minimum of 25 percent increase in profits for companies. Building your customer retention can help it feel like the holiday season for your company every month!
Understanding the needs of customers and providing them with outstanding services corresponds with an increase in profits for businesses and will provide you with a loyal consumer base that can power your growth.
To increase customer retention and provide customers with the exceptional service they want to see, it is important to review how the business segments differ. Know what customers will appreciate based on what they have purchased. Here is what you need to know to help you form a customer retention strategy for your business.
B2B Customer Retention
When building a customer retention plan for B2B marketing, remember all of the different people involved in making the purchase. You need to keep the main user at the company satisfied, but you also have to keep their financial department happy as well as those who manage integrations, and any other departments that your product impacts.
Therefore, your retention plan should focus on helping customers get the most out of their product after their purchase so they can demonstrate ROI. Ask how the product works for them, make sure it is living up to their expectations, help them troubleshoot any problems, and provide support to help you keep all levels of the organization happy. Maintaining communication also helps you to anticipate and solve any problems before they grow too large. You can also gain a better idea about the deals and promotions that might encourage repurchasing later on.
B2C Customer Retention
For B2C, since you only have to worry about convincing one person to return to your company for their next purchase, you will shift your strategy a bit. Depending upon the type of B2C company you run, here are a few strategies you can employ.
Product-based
For product-based companies, loyalty programs can provide your customers with great motivation to return to your organization. Letting them earn rewards or even work towards free or discounted products can let them know that their loyalty is appreciated.
Focusing on fulfillment and providing customers with precisely what you promise can also help to build a positive experience. Consider how Amazon provides customers with reliable deliveries, even taking a picture of the delivered product so that customers know precisely when it arrived and then asking for reviews. Customers feel they can rely on Amazon’s services and know that their feedback is desired.
Subscription-based
Many subscription-based companies make the mistake of waiting until it is time to renew to reach out to customers. Instead, work to maintain the relationship between payments. Reach out to them with special offers (such as during the holiday season), offer loyalty discounts after they have subscribed for a certain number of years, or send occasional bonuses to let customers know you appreciate their business.
SaaS-based
When it comes to encouraging those who have subscribed to your SaaS product, providing customers with extras or swag throughout the year can go a long way. Not only does it show customers that you are thinking about them, but it also helps to create a positive association for your brand. Your customers will have a regular reminder of your brand throughout the year, which can then help encourage them to remember to re-subscribe.
Focusing on marketing fulfillment and a marketing strategy that drives customer retention can help you build a business that continues to grow. Understanding what customers want to see from the brands they purchase from and building that personal relationship with them, can help organizations create this desirable customer experience moving forward. If you want to learn more about how to build these ideas into your own marketing campaigns, reach out to us at Pollock Marketing and let us help you create campaigns that will drive conversions.