Archive | July, 2018

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How does CRM Solutions help in customer retention?

Posted on 26 July 2018 by sam

“People will forget what you said. They will forget what you did. But they will never forget how you made them feel” –Maya Angelou. Rightly said by Maya (poet), these lines also apply with your existing customers and the kind of experience you give them.

Rising churn rate is an alarming issue that businesses are facing today. However there are some companies  who are working actively on customer retention as compared to acquiring new customer. Simple reason behind this is that the cost of acquiring a new customer is higher than retaining a customer.

On scrutinizing more, businesses found these problem areas for rising churn rate:-

1] Customers are no more interested in your offerings.

2] Customers feel they are not taken care of.

3] Customers think their issues are not getting addressed rightly and on time.

4] Customers go ahead with your competitors offering.

Failure to pay attention to these problem areas contribute to rising churn rate. A key to retaining your customers if solving the issues they are facing and making then feel that they are valued, important and special. How do we ensure we do this for each and every customer?

Tip 1:- Invest in a smart Customer Relationship Management software. By smart we mean it has to be super smart. Smart enough to automate almost every task or a few tasks. (We know you must be already using one but check if that completely syncs in your requirements and moulds as per your business process.)

1] Automate your follow-ups:-

Be it your prospects or your customers, every salesperson needs to follow-up with them and it is highly impossible to get in touch with each one of them. Use the power of an automated CRM to send personalized and automated follow-up emails. This will free up your sales team so they can focus on personally in touch with all these customers over a call. Customers value this personal touch which your company maintains with customers and this gives them a sense of not being forgotten.

Tip 2:- Use email automation module present in the CRM and automate your follow-ups. You will then not be required to invest in an email marketing tool for even sending bulk emails.

2] Send great deals for your esteemed customers:-

Your CRM’s intelligence to its fullest. Your CRM can easily fetch details of your highest paying customers, loyal customers etc and you can extend attractive deals to such customers. By taking this initiative you get repeat business and also ensure customer loyalty. Look into the purchase pattern of your customers and make an offer which customers cannot refuse.

3] Check if your customer’s issues are getting solved within the estimated time:-

Where there are customers, there will also be queries.  Customers come to you with a great hope about the issues getting resolved and someone paying keen attention to the issues they are facing. This is the time when you can ensure customers loyalty towards your company. Ensure that your support team has proper resources and all necessary information required for solving customers issues.

This will reduce your churn rate by making customers feel that they are not getting ignored and their issues are being taken care of.

4] Use direct marketing techniques to get in touch with your high valued but inactive customers:-

There will be two types of customers that you have. Highly valued and active customers who regularly purchase your products/services. And the second type will be highly valued but inactive. Who rarely make a purchase or have stopped purchasing.

Using the reporting feature, create a list of both the types of customers. You may prefer not investing efforts in keeping active customers engaged with your company, however, the weak link is the inactive customers.  Get in touch with these inactive customers and gain their interest in your business again.

Ask them questions as to why they have stopped or reduced the frequency of purchasing your products/services and hit their issues.

Depending on the business model you are, B2B or B2C, get in touch with customers over a call and in case of B2B, a personal meeting will be ideal to re-generate healthy relations with your customers.

5] Reward regular customers:-

Among the high-value customers and who actively make a purchase, reward such customers.

You can reward these customers for being with your company and helping you generate revenue.

Identify such customers using smart reporting of your CRM and send these incentives via bulk email.

Tip:- Try cross-selling strategies to active customers to ensure revenue generation and customer loyalty.

 

6] Send some love on their special day:-

Send personalized birthday/ anniversary wishes to your customers and make them feel special. This will only require email automation where you can set predefined parameters and email template and you are ready to send wishes to your esteemed customers.

Takeaways:-

1] Invest in a good sales CRM.

2] Use automated CRM to automate almost everything, right from sending personalized emails to set up workflows.

3] Customers need attention and hence try to be in touch with all of them and ensure that their queries are resolved on time which will help you reduce the churn rate.

4] CRM is a powerful tool if used wisely and can be your best companion in all over sales and support process.

 

Author:

Abhishek Agrawal is the Founder & CEO at CompanyHub CRM. A technology lover and a writer who loves to give simple solutions on making sales teams lives easier. You can get in touch with him on Linkedin.