The best business strategy of all
Businesses spend a lot of time and energy looking for new customers. That is extremely important when starting a new business – how else would you grow? Unfortunately, very few businesses put that same time and energy into retaining their existing customers.
Looking at statistics, spending time and money on customer retention is much more effective than spending time and money on customer acquisition:
It can cost up to 5x more acquiring a new customer than retaining an existing one.
Increasing customer retention by only 5% can increase profits by between 25% & 90%.
You have a 60-70% chance of selling to an existing customer, and only a 5-20% chance of selling to a new one.
So how do you increase customer retention? By forming relationships with your customers – understanding their needs, listening to them, asking for their feedback and making their experience with you unforgettable (in a good way!) are just a few examples.
This can become a daunting task, especially as your business grows and you get more customers. Fortunately there are quite a few CRM (Customer Relationship Management) systems on the market – the trick is in finding the one that is right for YOUR business.
Originally, CRM systems were designed to help businesses build and maintain customer relationships – with both new and old customers. Nowadays, CRM systems are much more than contact management tools. Different systems provide different features, but the majority of CRM systems offer the following functionalities:
Easily capture leads and prospects and then nurture them
Manage your sales pipeline and set targets
Manage the workflow so you don’t drop a ball
Assign different tasks to different team members, with deadlines
Send quotes and proposals directly to a customer
Draw reports on activities, targets and sales to prepare for sales meetings
Send regular newsletters to customers, e.g arrival of new stock or special offers.
The right CRM tool, used effectively can help you find leads and turn them into sales. But the customer journey shouldn’t end there. The magic happens once you have the customer on board and you begin with your customer retention strategy. It is important to store key information on every client to better understand their needs, to follow up after a sale to see if they are happy, to ensure your customer service is world-class and to make your customers’ experiences with your company as pleasant as possible to ensure that they stay loyal and come back for more. And never forget, a key ingredient in delivering excellent service, is a loyal, happy and committed team.
At The Productivity lab CC we focus on helping you keep your customers for life and your employees happy and loyal.