Your company could be seeing 15-30% more revenue every year.
It’s money that vanishes when current customers leave your company. I hate to point fingers, but of the 20-40% of customers that leave businesses each year, 68% of the time it’s because of the treatment they received.
If you’re worried about customer retention, and can already see the damage caused by lost customers, consider the ways that a Customer Relationship Management (CRM) software system can help.
Here are five ways CRM can increase customer retention and keep additional revenue from walking out the door:
1. Concentrate your efforts
Metrics gathered and displayed in your CRM can reveal which of your accounts are responsible for the most revenue. This info lets you budget your time accordingly and allocate resources where they will have the most return. For example, if you have x-amount in incentives to give away, you can reward your most profitable customers to further increase their loyalty. Identifying these accounts can also help you develop strategies for cross-selling.
2. Spot and fix problems sooner
RightNow’s 2010 Customer Experience Report found that 82% of people stopped doing business with a particular company as a result of a negative experience. Luckily, 92% of these individuals could be convinced to go back. But how many of your of lost customers returned to you?
If you have a CRM, you can spot changes or sudden breaks in purchasing patterns and hopefully detect drifting customers before they actually leave. Then, you can proactively investigate and solve issues rather than letting them damage valuable business relationships and jeopardize future revenue.
3. Target customers with special offers
The more you know about your customers, the more you can tailor your approach to each individual. CRMs let you view a customer’s purchase history so that you can determine what kind of offer will be most appealing to each individual and increase relevancy, which will keep your brand on your customers’ minds.
Though there are countless ways to apply these capabilities, one great way to do so is when the time for contract renewal approaches. Many CRM systems can show you when accounts will be up for renewal far before the magic day arrives. This allows you to send out communications (and, if you find you need to, re-establish contact) well in advance of the contract-end date so that you appear customer-oriented instead of sales-obsessed.
4. Be reliable and responsive
The scheduling features on most CRMs allow you to schedule follow-up calls or emails and then remind you when the time has come to complete the action. This will help you keep track of appointments, and do what you said you’d do when you said you’d do it.
A CRM can also help you be responsive. Many systems can be configured to send automatic email updates when a customer issue is received or resolved. Sharing this info with the customer in a timely manner shows that your company takes the problem seriously and wants to resolve it as quickly as possible.
Proving that your company is reliable and responsive makes a great impression and encourages customers to trust you, thereby strengthening loyalty.
5. Maintain and perfect the human element
A relationship is something that is established between people, and a CRM helps make it easier to see your customer as a person and not just a number. For example, many CRMs have fields where you can add personal notes or other bits of information about the customer, allowing sales and customer service reps to personalize outreach.
It can be difficult to learn much from the results of such outreach when it comes from customers you don’t remember, or is so outdated it’s no longer relevant. CRM software gives you the advantage of real-time metrics on customer satisfaction so that employees can pay close attention to what works and what doesn’t. With this information in hand, they can adjust their follow-up strategies accordingly.
Looking for Customer Relationship Management software? Check out Capterra's list of the best Customer Relationship Management software solutions.