The main aim of a CRM (Customer Relationship Management) system is to improve a business’s customer retention rate through increased customer satisfaction. Retaining a customer often has a higher value than constantly recruiting new business. This is because it is easier to upsell to current customers and increase a business’s earnings from one customer over time. It also increases a company’s reputation, naturally making it easier to recruit new customers.
An article posted by HubSpot in February 2021 states that a 5% increase in customer retention can drastically improve a company’s overall revenue. This increase is said to be anywhere between 25% and 95%.
Customer Retention Strategies
Customer retention is rooted in keeping your customers happy by forging strong, lasting relationships, built on trust. If customer retention is successful, a business’s customers will remain interested in the products or services that the said business is selling. There are multiple aspects that have been tried and tested, and are known to assist along the way to keeping a customer satisfied.
- Data Storage and Analysis: it is important for a business to collect, store, and analyse all the customer data that they possibly can. This data will be used for later review, ensuring a company can make informed decisions.
- Document Interactions: the data to be collected should include every interaction that a company has with a customer. This documentation should be as detailed as possible. This documentation will aid future and other colleagues in their interactions with a client.
- Personalisation: the data collected can be used to personalise future interactions with clients. Examples of the information can be previous issues experienced, the stage of the sales process that a potential client resides in, and much more. By personalising relationships with clients, relationships will strengthen, trust will be built, and customers will feel valued.
- Customer Journey Tracking: a customer journey refers to the stages of the relationship that a business will have with a customer. These are touchpoints at which a customer will interact with the company. These can include marketing campaigns, sales, customer services, and more. It is important to track each customer’s journey with a company, as this will allow a business to identify where they can improve on customer services.
Customer Retention Strategies in a CRM
Customer Relationship Management is key to customer retention, and below are some of the ways which the functionality of a CRM will assist in implementation of other customer retention strategies:
- Sales Management: a CRM aids in customer retention from the moment a potential customer first interacts with a company. This is because a CRM can provide information on the feasibility of a deal, informing a salesperson on how to interact with and approach a potential client.
- Customer Status: employees that have access to the CRM system will be able to view a customer’s status. This will provide the employee dealing with that customer with the needed information to appropriately interact with that customer. This information can include previous issues, whether upselling to that client is feasible, if a relationship needs to be strengthened, and more. This can aid in the personalisation of customer interactions.
- Information Logs: informed decisions are made possible due to the correct collection, storage, and analyses of data that a CRM provides. When one can access information easily, it simplifies decision making, promoting authenticity in interactions with customers.
There are multiple other functions of a CRM system that can aid in the improvement of customer relations and lead management. Contact us at Leadtrekker to find out how we can assist you in growing your business.