Around 80% of a business’s profits will come from just 20% of its existing customer base. That’s why it’s important that you put effort into nurturing your existing customers rather than just trying to attract new ones.
In most cases, those customers who visit your website are likely to only visit once. Think about it, you put all your time, effort, and resource into driving traffic to your website for each customer to only be giving you one shot. The cost of acquiring a new customer is also five times more than it is to retain an existing one (that’s not to say you should stop marketing to new customers).
So, let’s talk about how a powerful CRM platform, like Intilery, can help you to increase customer retention and drive revenue…
Providing a personalised experience
Ever heard the saying ‘When you speak to everyone, you speak to no one?’. Well, it’s true. Customers want to feel listened to and valued by the brands they interact with, and a one-size-fits-all approach to communications is a no longer enough.
CRM systems will allow you to gain real-time data analytics about your customers’ behaviours to deliver targeted, personalised messages that really resonate with them. By understanding their engagement and purchasing behaviours, you’ll be able to suggest products that really interest them. Engaged customers tend to purchase up to 90% more often and are likely to spend more per transaction. By building this emotional connection with your customers, they are more likely to become a loyal one, and are more likely to stick with you and not look to purchase elsewhere.
CRM data will also allow you to see who your most valued customers are. You can create loyalty programmes and offer perks and incentives to make them feel special, cementing your relationship with them. Tracking this data will help to decrease churn and therefore, improve your customer retention rates.
Having a visible customer journey
Having a solid understanding of your customers’ needs is important in creating meaningful relationships with them. CRM systems allow you to gather data about the successes of your marketing campaigns and how your customers are interacting with them. A well mapped out customer journey will show every interaction a customer has with your business, from the awareness stage right up to post-purchase. By analysing this data, you’ll be able to tweak your marketing campaigns and adjust sales processes up to the point where customers stopped their journey or reengage with customers who have purchased from you in the past. Upselling and cross-selling is also made easier by having access to all the information about your customers’ buying behaviours and being able to make predictions on the amount they are willing to spend.
So, there you have it, just a few ways that CRM can help you to improve retention rates. If you want your business to grow, then retaining existing customers should be high on your list of priorities! Don’t forget, retaining customer is easier and cheaper than attracting new ones and by having a retention strategy backed by CRM, your business is likely to prosper!