One you have identified your target audience to whom you are to sell your killer product, your business is ready to take off, but to hit the ground running, you need to ensure your customers are hooked to your product despite fierce competition.
The customer retention ratio accounts for the success of a business. As an entrepreneur, you must dedicate your resources to retain existing customers because that is way cheaper than finding new customers. There are a number of factors that decide customer retention ratio. The higher the customer retention ratio, the better it is.
How your product or service provide value, how your customer care team handles of their queries, and above all how you are able to provide them with better experience than your competitors are some of the factors that decide the retention ratio.
Your sales team and customer care team are two largely responsible teams to improve the retention rate. Both the teams have to work in collaboration so your customers are not let down at any stage of buying journey.
Why is it important to find out customer retention ratio?
Success of a company cannot be just measured by the number of acquired new customers but it is also measured by the number of retained customers. A higher customer retention ratio points out that you are able to deliver the best experience to your customers.
Retaining is vital because it brings a lot of revenues to a company – surveys have revealed that decrease in customer attrition rate by 5% can result in increased revenues by 25%.
This is because you can save money on marketing (it is five times more affordable than marketing for new customer acquisition) and your happy customers will likely refer your products to other people, so customer base will grow.
Tips for retaining more customers for your business
Here are the tips to follow if you want to retain more customers for your business:
- Highlight case studies
The first step is to initiate the sales process is to determine whether the prospect is the right fit for your company. Every prospect has certain expectations that they want a company to fulfil but that is only possible when your company has that style of doing work.
Highlighting a couple of case studies can clearly explain to your prospect the style of communication, your collaboration with customers, and the results achieved by them. You can share testimonials for better understanding of what you could offer to them.
By sharing case studies, you will be able to tell your prospects what kind of expectations you can meet. As they will already know about the way you deliver your services to your customers, chances are you will not lose them.
- Identify customers’ expectations and meet them
Every customer has different expectations and you will try to meet the anyhow otherwise they will soon become upset. During the sales process, you need to be clearly specific when you will be able to deliver on results. Customers are generally impatient with results.
Even though they know they will get certain results, they would like to know how long it takes. Further, every customer has their own reasons to approach you and hence their expectations vary. For instance, one customer may feel that your prices are high so your product or customer service should be excellent.
Undoubtedly, they would want to make the most out of it. However, for another customer, you would be a simply collaborating company and hence they would want from you to take care of the collaboration rather than of your brand.
It is intrinsic to understand the goals of your customers, so you meet their expectations without further ado. This will help you deliver a delightful experience and as a result they will stick to your brand. You cannot establish a long-lasting relationship with your customers unless you fulfil their demands.
- Ask for feedback
To increase customer retention, you should know the reason for customer attrition. Once you know why your customers leave your company, you can work on those areas to improve yourself. Here comes in the role of feedback.
This is the best way to know about the reason for a high customer churn ratio because you will get to know from your customers. Pick random customers and ask for the feedback. You do not need to make tedious and lengthy feedback forms.
Avoid open-ending questions because no one has enough time to tell you in detail where your business lacks – in fact, no one bothers. Keep tabs on customer behaviour so you know what works for them and what dissuades them. If you have funded your business with startup loans for bad credit in the UK, it becomes crucial to emphasise retaining your current customers.
- Your customer should familiar with the entire customer support team
Customers generally communicate with one of the executive and sometimes customer manager throughout the entire buying journey and after sales journey. Whether it is a meeting or phone calls or emails, the same person will be handling all inquiries of that customer.
For smooth flow in customer experience, this sounds a wide decision, but the problem occurs when that executive is away from work or has been promoted.
It is not so easy for a new customer support executive to understand the whole project and deliver the same kind of valuable experience. Therefore, make sure your whole staff knows about each project.
The bottom line
To ensure the continuity of your business, you need to retain your customers. The higher the retention ratio, the higher the revenues will be. One of the benefits of retaining customers is that it will help save money on marketing.
If you have already funded your business with loans for bad credit and on benefits, it becomes more crucial to ensure retaining customers. The tips mentioned above can help you do it. As long as you know the reason of high customer attrition, you can automatically boost retention ration.