Vilfredo Federico Damaso Pareto coined the idea that 80 percent of results come from 20 percent of the action. The Pareto principle may date back to the 1800s, but it’s still relevant for the consumer marketplace today. Take a look at your most loyal customers. Forbes reports that most businesses find 20 percent of their most loyal customers actually make up 80 percent of their sales.
Studies also back up the idea that retaining customers can positively impact your bottom line. Research from Bain & Company shows that increasing customer retention rate by just 5 percent increases profits from 25 to 95 percent. But which customer retention strategies actually work?
Dig into your marketing and sales data to determine when customers are buying and when they’re leaving your sales cycle altogether. Use your data to help determine what could snag a customer during a renewal period. Offer to re-train loyal customers on a product to improve their own sales. Upgrade their software package to premium service or extend an invitation to a VIP conference.
Figuring out how to interpret and leverage data from your CRM system can be difficult to master and pass on to your entire team. You can find ongoing video training on data-driven tools and insights for Infor CRM. Users can easily access more than 300 videos with development and technical topics, product training and product briefs.
Tracking Customer Behavior
A robust CRM platform is just the first step in collecting and analyzing sales data. To improve engagement, look at the data where your customers are already hanging out. Check your Facebook Insights tool for the times of day your customers are the most likely to respond and engage. Then roll out boosted posts, useful resources or launch Facebook Live to answer questions.
Google Analytics can also help you figure out which buttons your audience is clicking the most, and what customers are searching for. Discovering that current customers are spending more time on your FAQs page than your blog, for example, offers the opportunity to re-focus your content and add more value where it’s needed most.
Build quality relationships with existing customers by gaining trust with personalized attention and support. Call or email them before their contract or warranty is up to talk through any product challenges and next steps. Immediately respond to emails, tweets or phone calls with omni-channel support to provide seamless engagement. The more you can focus on being an advocate for your customers’ needs, the more likely they are to trust your company and return for more.
Proactive, Shining Service
Even the most sophisticated customer retention strategies will fall flat without a foundation for proactive, shining service. Consumers react swiftly after poor service and will readily switch providers. According to the 2016 Customer Engagement Index, 47 percent of customers take their business to a competitor within a day of experiencing poor customer service, and 79 percent do the same within a week.
Focus on old-fashioned principles for customer service like listening, offering empathy and responding to their needs with a pleasant demeanor. Next, give your customers an engaging customer service experience without endless hold times. Continuing to shuffle customers through automated prompts and recordings sends the message that they’re just another number in your client base.