5 ways how CRM software can significantly increase your customer retention rate

The growth of a business depends on many factors. Along with manufacturing top-quality products and services, a company should also know the art of branding and promoting the business. Through business marketing, you can find more buyers for your products. While getting new buyers is essential, you should make sure that you retain the existing buyers.

Customer retention rate is one of the most crucial things today. Managing relationships with existing customers will help your business to grow faster. At the same time, customer retention helps a business to create a profound brand value. The journey from a company to a brand denotes the success of a business. For customer retention, your business must invest in top-quality CRM software.

Why Customer Retention Matters?

For the growth of a business, customer retention is essential, and thus every company invests in techniques and strategies for retaining their customers. When a business has a good number of loyal customers, it does not experience a downfall in sales drastically, even in poor economic scenarios. Find some other reasons why you should invest in robust CRM software.

  • Repeat Purchases: First-time buyers are always hesitant, and they do not purchase a lot of things. When their first-time experience is good, they come back and buy again. In repeat purchases, buyers invest money generously without any hesitance. So, customer retention will help your business to obtain more sales orders.
  • Finding New Buyers Is Difficult: Finding new buyers for your products is not an easy thing. You have to invest time and money to find new customers. On the other hand, retaining the existing customers is easy. A business makes 5 times more expenses to find new customers than retaining the existing buyers.
  • Higher Revenue: According to the industry surveys, 80% of business sales come from 20% of customers. So, invest in CRM software and retain the existing customers to increase your business revenue. Existing customers invest more generously in various products of your company.
  • Sell New Products: Introducing new products is a significant risk for the companies. Will buyers accept the products? A new buyer may be hesitant, but loyal buyers can try the latest products. So, the success of a newly launched product depends on the customer retention of a business.

How to Boost Your Customer Retention Rate?

Businesses adopt many strategies for retaining their existing customers. Relationship management players an important role here, and thus a company must invest in advanced CRM software.

1. Adopt Cross-Selling and Up-Selling Strategies

Cross-selling is a marketing technique that encourages customers to buy related products. For example, a person wants to purchase a pair of shoes. You can also encourage him to buy some socks.

Up-selling strategy is all about encouraging the customer to buy a better product than what they have chosen. For example, a person wants to purchase a jacket. So the seller can try selling a better quality jacket to the buyer, bringing more profit for the seller.

Both cross-selling and up-selling strategies work well on the retained customers. New buyers are hesitant, and thus they don’t invest money generously in the products from a particular brand. On the other hand, existing customers already know the quality they can expect from your company. Thus up-selling and cross-selling strategies can convince them to purchase more products.

2. Give Rewards to Your Returning Customers

For a better customer retention rate, you need to reward the returning customers. Offering them special discount coupons is a good way of encouraging them to purchase products from your store. Rewards are not essentially discounts in all cases. You can offer a freebie to returning customers. How can you track your returning customers? You can use advanced CRM software to tracking your customer activities.

3. Flexible Payments for the Loyal Customers

Offering flexible payment options is another way of building a good relationship with loyal customers. The buyers, who make frequent high expenses on your store, would love to get recurring payment options for a few expensive goods. Many eCommerce stores offer purchase now and pay later facilities to their buyers. Payment flexibility can boost your business’s sales, and you will find a better customer retention rate on your CRM software.

4. Loyalty Programs

Introducing a loyalty program is a proven way of retaining customers. Many businesses develop unique loyalty programs for frequent buyers. The loyalty programs give exciting discounts to the buyers. For example, you can introduce a point system. Every time someone buys products from your store, the person earns some points. Later, the buyers can use those accumulated points to obtain exciting discounts on the products.

5. Stay in Touch with Buyers

Small gestures can help a business to build a good brand value and retain loyal customers. For example, you can collect customers’ basic information such as name, birthday, gender, email, etc. Then, send regular newsletters to the buyers to keep them aware of discounts and loyalty programs. You should also send birthday wishes to the buyers. Sending festive greetings and newsletters will become easier with CRM software.

Conclusion

Customer retention is crucial, and a business can earn better revenue through various customer retention strategies. For building customer retention strategies, one should use an advanced tool or CRM software. Using the right CRM platform helps businesses to track their loyal customers easily. Nevertheless, the system also helps to keep regular communication with the customers.

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