A company powered by existing customers is in an ideal situation to achieve its revenue goals.
It’s still a challenging task, but the firm doesn’t have to deal with the headaches of getting enough new customers onboard. No wonder Harvard Business School’s study found a 5 percent increase in customer retention can lead to a 25 to 95 percent boost in profits.
The key message? Customer retention is critical to a company’s financial health. Yet, organizations still have a long way to go. 6 in 10 US corporate executives said it is “very” (9 percent) or “somewhat” (50 percent) difficult for them to please customers. Companies are still on the verge of exploring what they could do to retain current customers and get more business from them.
If you’re among the lot, and retaining customers is one of your big goals for 2016, here’s some good news: we have three actionable tips to help you keep most of your existing customers.
1. Tap Into Your CRM
Your CRM will give you an insight on important details such as membership expiration dates and due payments. Use the CRM to keep in touch with existing customers, and remind them of those critical dates. You can even flag your best customers and provide them exclusive treatment (free upgrades for example) to keep their experience at peak.
If you don’t have a system in place, sites like SelectHub offer a CRM leaderboard comparison of the top CRM software as well as a buyer’s guide. Companies can refer to such websites to see if a particular CRM software meets the requirements of their organization. For example, for customer retention, features such as predictive analysis should be present to make predictions on optimal times to send membership renewal notifications.