7 Result-Driven B2B Customer Retention Tactics You Must Know
Smart and effective customer retention strategy is the only thing that differentiates good businesses from great ones.
You probably know why!
But if you don’t, here’s a quick stat check –
As found by the Gartner Group, a whopping 80% of the future revenue will come from just 20% of a company’s existing customers, which means if a company fails to keep its customers in the long run, a huge financial loss is already on its way.
Not yet convinced? Here’s another!
A recent survey conducted by B2B CMOs revealed customer retention as the #1 strategic force for 2017.
And yet, most businesses either have a poor customer retention strategy or none at all. Why? Let’s find out!
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Why is your customer retention low?
There can be multiple reasons why the customer retention rates of businesses are low. But the most common reason why most people fail to repair it is that they fail to identify their shortcomings, which can be:
1. Your company’s marketing strategy is focused on gaining new prospects while maintaining good business relations with existing customers is completely ignored.
2. The customer service provided by your company lacks authenticity. The customers are not satisfied and left disappointed.
3. Your services and products show no growth while the competitors are striving to bring the change and upgrading their products and services for gaining more attraction.
4. Two-way communication is prevented or not considered.
5. You fail to make a connection with the customers and don’t express frequent gratitude for the golden chance to do business with them.
6. You drive customers away by rejecting to implement their suggestions and ignoring their feedback.
7. The customers refuse to work with you as your company has not given them any authentic reason to pursue the deal or make a repurchase.
What can you do about it?
Now that you know the reasons that are leading to poor customer retention of your organization, how will you mend it? Following are 7 Result-Driven Customer Retention Tactics that we have enlisted after hardcore research and practical experience in the field.
1. Reroute your customer service towards excellence
We are living in the age of the “customer”. The market has become ‘customer-centric’ and the priority of companies has shifted from product-first to customer-first.
U.S. companies lose more than $62 billion annually due to poor customer service.
To prevent the loss, providing exceptional customer service has become the top priority for businesses. Here are a few ways you can do that:
- Always accept customer service requests irrespective of the channels.
- Make it easy for your customers to reach out to you by offering a number of customer service options through emails, contact numbers, website chat box, and social media accounts.
- The aim should always be to resolve customer issues as soon as possible.
- Try to resolve all the issues of the customer and ask for their feedback.
- The importance of having well-trained, friendly, and professional service agents can’t be neglected.
2. Create a Customer Loyalty Program to encourage repeat purchases
According to 64% of retailers, Loyalty programs are the best way to connect with customers.
While according to 69% of consumers, their choice of retailers is influenced by whether or not they can earn customer loyalty/rewards program points.
Not only that, 49% of customers agree they spend more after signing up for a loyalty program.
Ways to ensure the potency of a Loyalty Program
The Loyalty Report 2018 by Bond Brand Loyalty reported that in order to assure the effectiveness of a loyalty program; you have to avoid these problems that drive the members away:
- Short expiry dates of points.
- Unprofessional representatives who lack knowledge about the program and fail to address their queries.
- Unavailability of desired rewards due to catalog changes or blackouts.
- Receiving too many emails as a result of opting for the program.
Why do customers participate in Loyalty Programs?
The main reasons for participating in a Loyalty Program are as below:
- “Ease of use” (For 53% of consumers)
- “Gives me great discounts” (For 39% of consumers)
- “Easy to understand” (For 37% of consumers)
Why do customers disclaim Loyalty Programs?
The most common reasons for leaving a Loyalty Program are:
- “It took too long to earn points of rewards” (For 57% of consumers)
- “It did not provide rewards I was interested in” (For 53% of consumers)
3. Focus on improving your product/service offerings
While there is an undeniable increase in upgrading the customer experience for growth, the significance of products and services still remains the same.
According to a survey conducted by Yopto on American shoppers’ attitudes, it was revealed that 55% of consumers remain loyal to a brand for the love of the product quality.
It was also revealed that 51% of the customers change brands because of poor product quality.
Even if your business is achieving new heights daily and has garnered a huge loyal customer base, investing in improving your offerings and trying to adapt the recent trends into the existing products and services is non-negotiable.
If you lack in innovating new products or upgrading existing products with new features, you are sure to drive your customers away as your competitors are already knocking on their doors with a better product.
Innovation is the secret of all the top leading brands that help them maintain an impressive 90% customer retention per year.
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4. Seek customer feedback and act on it
According to Microsoft, 52% of customers around the globe believe that companies need to take action on feedback.
Customer feedback can fill many blanks for you: help you reckon customer satisfaction levels, identify the strategies helping your brand succeed, and acknowledging the loopholes needed to be mended.
Besides, asking for feedback is a great way to re-establish business relationships with lost customers who stopped coming back for your services.
If they make time to offer you ideas and suggestions, you will know they are still interested in working with you and it will also show you a secret way to earn them back.
The focus should not only be on collecting Feedback but also acting on it.
5. Empathize with your customers and value their business
Showing gratitude to the customers helps in creating an emotional bond which in the long run makes it difficult for your customers to leave you.
Express your thankfulness by sending emails, or go a mile extra by writing handwritten notes.
Further, you can also send personalized gifts and give away free products and services based on their buying history.
Start a weekly competition and feature your most loyal customers on your business’s social media pages.
Celebrate the customer’s birthday by sending special gifts, free services, and a heartfelt message.
According to Capgemini’s report, emotions help in the growth of businesses as 82% of the customers with high emotional engagement always buy from the brands, they are loyal to and are even ready to pay them double than the industry standard.
6. Create exclusive content for your existing customers
Customer retention is often neglected in content marketing. The focus is only on customer acquisition and demand generation which damages the marketing process to a great extent.
The efforts towards a prospect should not end when they become your customers. It should continue as the existing customers are going to generate 80% of your revenue in the future.
A customer’s journey has just hit the start button when they place an order or seal the deal. So, while creating content, don’t dare forget your existing customers.
7. Commit to Analyse customer satisfaction and retention
You need to keep proper track of customer satisfaction and retention rates with the help of good analytics software. Make sure your chosen service alerts you even when a customer is no longer engaging with your business and has stopped showing any activity.
Find out the reasons for their disengagement and work on them. Try to earn them back by sending customized reminders. If they still don’t respond, make them feel special by providing a few offers and coupons.
Always remember, when a customer calls you with their problems, another 22 people may be dealing with the same problem but have chosen to remain silent.
So, if you don’t take immediate action, you might not just lose one customer but 22 other customers and so many repeat purchases.
Low customer retention rates not only drains revenue but also multiplies your costs considering the fact that acquiring a new customer is 5 to 25 times more expensive than retaining an existing one.
To prevent the damage, the businesses are increasingly adopting smart methods and strategies for customer retention.
To give you a head start, we have discussed the best-tested methods which can help you secure your customer list and simultaneously also create a new one.
But if you still don’t see any improvement, don’t hesitate to contact expert B2B sales and marketing consulting firms. They not only have the required expertise but also possess years of experience in guiding organizations to better customer retention rates.
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