In today’s article, we’re talking about one of our favorite subjects – customer retention software and its applications. If you own or work for an e-commerce company, you know how crucial it is to thoroughly understand your audience and to make the most of every interaction with them.
That’s why we’re taking our time to learn more about how customer satisfaction can be transformed into more profit for your business, using the right software.
What is customer retention?
Customer retention is our favorite subject, by far. Partly because that’s one of the things we’re good at, but mostly because we truly understand the power of retention vs. the waste of money that is acquiring new customers.
You’ve probably already heard this before (especially if you’ve read any of our other blog posts): acquiring a new customer can cost up to seven times more than retaining an existing customer.
Moreover, the success rate of selling your product is 60-70%, whilst to new customers is only 5-20%. So, there are all the reasons in the world to be passionate about customer retention, especially if you own an online business.
The importance of customer retention
Before we can dive into the nitty-gritty of customer retention software, we want to talk a bit more about the power of customer retention.
People are most likely to buy from a trusted brand
All customers go through the process of a customer journey. This means that regardless of the products or services you sell, just like any relationship, you need to build trust in order to create customer loyalty.
That’s why it’s such a shame to discard already existing customer relationships in order to acquire new customers – it’s not only costly, but it’s a definite waste of time invested in building that oh so precious trust.
In the age of social media, recommendations are key
More than half of all consumers check reviews on Google before making a purchase. Also, an astounding 94% of survey respondents say they avoided a business due to bad reviews.
So, needless to say, reviews are important. And it’s much more likely to be forgiven if you make a mistake, to be shared on social media when you do something right, or to be overall supported by people who have been with the brand for years on end.
Create a customer base that you can grow with
It’s crucial to have an audience you can listen to and get honest feedback from. And, of course, people who have interacted with you several times have a better understanding of your business than first-time clients.
By investing in increasing your customer retention rate, you’re not only going to make more sales – but you’re going to have a database of people you can rely on when you need an honest opinion.
Types of optimizations for customer retention
Customer retention is not a “one-time thing” – it’s an ongoing process that should be invested in on a regular basis. As your business evolves, expands, and changes, so do your customers’ desires and expectations – so you need to be on top of your game, always.
That being said, let’s take a look at some of the most common practices that improve customer retention rate.
One of the key pillars of successful customer retention boils down to a simple formula: happy customers = more sales. It’s as simple as that, but it’s a very complex task when you truly understand customer experiences and how many things you can improve on to make them as close to flawless as possible.
From the first time they navigate on your website, to the payment methods you offer and their customer service experience. Everything needs to be top-notch in order to ensure that as few people as possible churn.
Fortunately, in the process of creating an (as close to) perfect customer journey experience, you have some customer retention tools that you can use that will guarantee your overall success.
Knowing how, when, and why you price your products and services a certain way is an entire science in itself. The right pricing method can expand revenue, attract more customers, and increase perceived value.
Pricing can be done using several models, such as market-based pricing, value-based pricing, or per-use pricing. Moreover, with the right type of pricing in place, you can more easily eliminate those customers that will most likely churn.
You can learn more about pricing by reading some of our previous articles on the matter, here.
Ease of use
If your customers have any issues with navigating the website, paying online, or receiving their packages on time, you have a bit of a problem on your hands. One of the first concerns any business should have is making sure every aspect of the interaction between them and their customers is going flawlessly.
It’s especially true in today’s climate – if 15 years ago people were more understanding about websites crashing, online payments not being available, or lost tracking numbers, nowadays such rookie mistakes are not easily forgotten.
There are plenty more statistics that show us the exact same thing – you need to get all of the steps of the buying process in order so that people don’t leave due to easily avoidable mistakes.
Customer loyalty programs are one of the best customer retention strategies to make sure your customers stay engaged, happy, and interested in your brand. You can use a dedicated customer loyalty software or a loyalty platform to make sure the right offers are sent at the right time, to the right people.
Discounts, special offers, and personalized bundles – you can really get creative and make the most out of the loyalty programs you offer.
As we’ve mentioned above when we touched upon ease of use, communication is another one of those characteristics that your business should have, no matter what. In the age of social media, more and more people search for a human-like connection when they decide to purchase something.
So making sure that your customers are constantly up to date, have their frequently asked questions answered, and see you present in their news feeds is key.
What is customer retention software?
Now that we’ve understood why customer retention is so important, as well as how the process may look like, let’s get techy. What is customer retention software and why should you care about it?
As we’ve seen above, customer retention is a process with many variables. It’s not just something you create in a day, give it a go, and reap the benefits. It’s a constant stream of effort you need to invest in – and pay attention to – in order to get the most of it.
Most entrepreneurs don’t have the time, the patience, or the expertise to take care of this themselves – and sometimes even a dedicated employee can be overwhelmed by the complexities of the tasks involved.
Once again, technology proves to be our best friend. Customer retention softwares have been created to efficiently identify and propose solutions for the most common problems associated with a low customer rate, such as:
- High churn rate;
- Negative customers feedback;
- Unmonitored customer lifetime value;
- Unused/incorrectly used customer data;
- Unfit customer retention framework.
The solution to your customer retention needs – Reveal
When it comes to customer retention management, Reveal is the one-stop-shop tool that helps you in all the areas you need.
We specialize in collecting, analyzing, and using your business’ data in the most effective ways – ones that will increase your customer retention rates and produce more money in the long run.
As we’ve seen above, customer retention is a never ending ongoing process – so you need the right software that will be there for you with the most innovative solutions, always.
Let’s have a chat about your goals and make them a reality!
There are so many reasons why we’re passionate about customer retention – some of which we’ve touched upon above. But the most important one is also the most difficult – because it never stops. There will always be something else to better understand, improve, and help evolve. And we’re here to help you do that with your business.
When it comes to increasing your customer retention rate, there’s a lot to talk about – and using the right software can make the difference between more profit for your business and a whole lot of lost time and money.
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