Best Customer Retention Tactics

1. Best Customer Retention Tactics [Mini Guide+ Checklist] As a business owner, have you ever thought about what could be better than gaining a new customer? You might be wondering if anything could be better thanthis. Well, the answer is customerretention. Gaining new customers is alluring but retaining customers comes at a lower cost and has the potential to provide a higher return oninvestments. So the question that now arises is how can businesses retain their customers for longer terms. To do this, you will have to form a strategy for retaining customers that allows them to stay engaged andcontent. In this blog, we will be sharing some of the best customer retentiontactics. Best Customer Retention Tactics [Mini Guide + Checklist] will help you to retain your customers. What’s more, we will also discuss how to use software for thesame. So, let us getstarted... What is CustomerRetention?

2. "Ifacustomercannotbe retained,thentowhat extentcanyoukeepacquiringnovel customers and let your business go on?" As the term suggests, customer retention denotes businesses' actions and activities to retain the maximum number of customers. This is commonly done through brand loyalty and customer loyaltyinitiatives. When we talk about customer retention, the process begins from the first time a customer makes contact with the company and goes on throughout the whole period of the relationship. Overall aids the companies in reducing the total customerdefections. The key aim of customer retention is to engage current customers to continue purchasing services or products frombusinesses. The best strategies for customer retention allow a business to form long-lasting relationships with customers. Their loyalty to the brand may even result in mouth publicity, further increasing brand awareness and buildingcustomers.

3. What is the Importance of Customer Retention for SaaSCompanies? SaaS companies spend money on raising brand awareness through various means, like social media, and thus, acquire new customers. This means that gaining novel consumers is expensive, due to the number of investmentsinvolved. Moreover, if these customers are not retained, the ROI will also belower.

4. Why SaaS Businesses MustRetain Customers? • CustomerLoyalty • Customers that are retained tend to spend more and purchase more often as compared to novel customers. This is because the retained consumers understand the value of a service or product and continue to visit repetitively. • Word-of-MouthAdvertising • One of the most effective ways of increasing brand awareness is through word-of-mouth advertising. When customers share their satisfactory experiences with their friends and relatives, there is a higher chance these people give the products or services atry. • Through this kind of advertising, the companies acquire new consumers, and that too, withoutspending. • Higher Return onInvestment

5. Companies that have high customer retention have greater ROIs. If you are thinking about theextenttowhichthiscanincreasecompanyrevenues,hereisyouranswer: • "5% increase in customer retention produces more than a 25% increase in profit." - FredReichheld • The major reason for such high returns is that return customers tend to purchase more products from a business overtime. • Concerning the profitability of SaaS companies, the expected revenue generation is even higher. Based on research by Swagata Kumar,“Boosting B2B customer retention by5% increases profits by up to95%.” • MoreAffordable • As stated earlier, acquiring novel consumers requires high investments in advertising, which is an expensive process. On the other hand, retaining an existing customer requires lesser expenditure. If you do not believe this, let’s see what Kate Silversaid: • “Most of the research shows that it costs between 6 to 7 times more to get a new customer vs. keeping the customers you alreadyhave.” • HigherCLTV • CLTV or Customer Lifetime Value refers to the overall revenue that an organization expects to earn from everycustomer. • Since return customers are likely to avail of more services from a company due to their love for the services and hands-on experience, a company with a higher customer retention rate is likely to havegreater CLTV.

6. Customer RetentionProcess • To retain your customers, there is an entire process that you mustfollow: • Step 1: Categorize YourCustomers. • The first step to retaining customers is through categorizing them based on the following aspects: • Which customers are driven byprices? • Which customers seekvalue? • Which customers are loyal to thebrand? • Once you have categorized your customers, you will know which approach should be used for which customer. For instance, a customer who has a good relationship will require an approach that is lesssalty. • Step 2: Your Service:ABSOLUTE! • When your services are top-notch, no customer would be willing to leave. Even though they might consider stepping back due to high prices, it would still be difficult for them to leave yourcompany.

7. So one of the most crucial steps in customer retention is ensuring that your services are as good as you think they are. If you are not sure, conduct surveys and ask for feedback from yourcustomers. • Another essential part of good services is talking the customer into availing services but not forcing them so much that they get irritated. A customer will only return if you keep himcontent. • Step 3: Remember, Automateit! • Make sure that the systems you use are working for your company. This may include the following: • A good system for contactingcustomers • Automated mailers for season sales includingCTAs. • Reward systems for loyalcustomers • When you have your systems in place, you can stay in touch with your customers and they arelikelytoreturn,consideringtheirlikingandloyaltytoyourbrand. • Step 4: Update YourOldies. • Oftentimes, companies think that they do not need to sell their services or products to old customers and that being a salesman is necessary only for newconsumers. • Other times, organizations fear that pressurizing or trying to sell to old customers can make them lose their relationship with them. However, this is not thecase. • Even return consumers look for companies to bring them novel offers and ideas. So, as a business owner, you must ensure that you continue to sell to your customers to retain them.

8. Best Customer RetentionTactics to AceYour Customer RetentionManagement Before we share with you some of the successful techniques of customer retention management, let us first understand what itis. In the simplest terms, customer retention management refers to the process through which customer satisfaction and customer experience are managed by a company. The key aim of this process is to acquire and retain as many consumers aspossible. The process of customer retention management is led by techniques and strategies that vary from one company to another, based on their segmentation and customer experiencegoals.

9. Customer RetentionManagement Techniques • Implementing a Feedback Loop • Several companies believe that they serve their customers well but sometimes, this is not the case. It is not necessary that the customers feel the same. So to ensure their retention, it is crucial to understand what they think about your company’s services so you have some scope forimprovement. • To do this, you must start getting customer feedback and share the same information with the members of the organization. Through a customer feedback loop, you can collect, analyze, and distribute surveys and reviews that customersundergo. • Maintain a Calendar for ConsumerCommunication • Irrespective of the responses of your customers, your company must continue to communicate with them. In case you haven’t heard from them in a while, you must reach out to them and try re-establishing yourrelationship. • Since you may lose track of days, a customer communication calendar can help you see when a customer last interacted withyou.

10. You can also consider sending them an email regarding the new offers in the store and adding a call toaction. • Encourage Your Customers with aMission • Not every brand needs to inspire their customers’ loyalty through systems and tactics - some may even inspire through mission, such asTOMS. • The business model of TOMS is entirely based on making the world a better place, which is why several people are loyal to thebrand. • Consumers tend to be focused on the environment as well as the impacts of their purchasing habits. This means that doing good is also essential to them, which clearly explains their relationship withTOMS. • Why Should You Use CustomerTraining Software? • Customer trainingrefers to how the customers are educated regarding the successful utilization of company services and products. This includes providing them with information and materials they need to meet the company'sobjectives.

11. The Four Major Aims that a Customer Training Softwarecan Accomplish are asfollows. • Increasing the impact of your products andservices. • Enhancing customerexperience • Augmenting the value of products andservices • Acquiring and retaining customers at each phase of the consumerlifecycle • If you are still not sure why you should use customer training software, the research report by Brandon Hall Group may convinceyou. • According to the Extended Enterprise Learning 2020 report, 45% of people surveyed claimed that they offer training to the customers actively. 49% of them agreed that it is capable of enhancing clientrelationships.

12. Why Should You Use CustomerTraining Software? • Enhance the overall consumerexperience • Produce recurring and extrarevenue • Reduce expenses invested in acquiring novelcustomers • Enhance clientrelationships • Develop brandawareness • Enhance the value of products andservices • Lowering costs involved in customersupport • How to Retain Customers QuicklyUsing Customer TrainingSoftware? • Do the tactics used by your company for customer retention encourage the long-term growth of your business and build trust? Do your products and services receive word-of- mouthadvertising?

13. If the answer to the above questions is not a confident “Yes!”, then you should consider opting for an LMS for customer training to quickly retainthem. A learning management system or LMS aids in the creation of targeted training for customers to enhance the rates of retention. This is because their pain points can be rapidly identified and resolved, which leads to satisfactionamong customers. Key Points to Focus toImplement the Retention Tactics with the Use of anLMS • Emphasize Your Customers’Needs • Attract attention to how your services address the pain points of customers. You may use facts, testimonials, infographics, or case studies for the same. • Monitor EngagementLevels • Through an LMS, you can track and analyze the engagement of consumers. This will further provide you with an understanding of what your customers want the most and how you can engage themfurther.

14. Make VideoTutorials • The key aim of customer retention tactics must be the increment of customers’ knowledge to increase the value of products and services. Thus, through video tutorials, they can engage and understand better the innovativeusages. Why Opt for CXcherry as aCustomer RetentionSoftware? • When it comes to choosing an LMS for customer training, CXcherry is extremely beneficial in retaining customers, as well as for the overall ROI ofcompanies. • Adaptive CustomerOnboarding • Help your novel customers to comprehend your products and services and adapt to them more quickly after a customizedonboarding. • EnhanceUpsell

15. Enhance upselling by allowing your clients to realize the actual value of your services and products and hence, obtain a higher return oninvestments. • BrandAdvocacy • Through an LMS, customers will become brand advocates due to their level of satisfaction. • Reduce SupportTickets • By educating and informing the buyers with the necessary details about the products and services, you will receive lesser supporttickets. • Boosts Service AdoptionRate • CXcherry helps in boosting service adoption by delivering trackable, comprehensive, consistent, and updatedtraining. • Congratulation!!! You’ve reachedhere. • Several businesses tend to hesitate when it comes to opting for new software or strategies for better overall functioning. However, it is crucial to understand that stepping out of your comfort zone can sometimes be highlybeneficial. • In this case, adopting CXcherryfor customer retention can reduce expenses to a great extent along with giving highROIs.