Tech companies have a demanding client base that is highly susceptible to churn. This is because of the fact that technology is an ever-evolving industry and customer loyalty dwindles if they find nothing new and interesting in the package offered. Tech companies must stay one step ahead of the competition in planning and implementing their customer retention strategies. Given the mounting costs of customer acquisition, it would be a costly mistake to lose an existing client base. This is the reason why an existing customer costs much less than a new one.
- Focus on Retainers and Renewals
For SaaS (Software as a Service) companies, a major chunk of business comes from retainers and renewals. Buyer behaviour must be shadowed many months in advance prior to the end of the contract. Giving loyalty incentives, discounts on renewal, added services or extended coverage periods are the commonly embedded incentives to influence a renewal decision.
- Personalize Your Service
Since most clients of tech companies tend to be corporates or start-ups, it is important to understand the nature of the business they are into and to tailor your portfolio to them. This gesture serves the double purpose of achieving better customer satisfaction on the grounds that your technology has a human side that prioritizes your existing customer, and of reaching out to customers in an effective way. Retaining customers is easy if you give them what they want before they go looking for alternatives. Customer retention strategies work best when they are backed with a targeted outreach.
- Start a New Loyalty Rewards Program
Loyalty rewards programs are not just reserved for big auto companies or the airline industry. Tech companies stand to gain a lot if they introduce simple customer retention strategies. The sad state of affairs in the technology domain is that many of the programs are multi-layered and are difficult to access. Keep it simple and accessible. Design the program in such a manner that it does not go out as a mere discount or a prize. It has to send out the message that the company will go every extra mile to retain the customer’s business.
- Embed an Information Hub in the Customer’s Dashboard
Most technology based services require their customers to sign in to a user portal. Besides offering customers exclusivity, speed and security, this opportunity for customer engagement can be used to garner their interest. A hub can be created wherein what’s new in the company, its team, its product etc. can be effectively familiarized. The communication can be dual purposed, with a mechanism for customers to interact with the company as well, offering feedback, reviews or rating services. The dialogue between the customer and their preferred brand will build loyalty.
- Refine Your Value Proposition
Technology companies can not afford to sit back and relax on their portfolio of services. To track customer pulse, it is important that every product is offered as a bundle of value addition – something more than the cash value. It is one of the most effective and time-tested customer retention strategies to keep revisiting and refining the value proposition to the existing customer, so that they are assured that the brand subscription justifies their outlay. Tech companies must constantly keep re-communicating and re-validating their value proposition.
- Address Dormant Customers and Trigger their Engagement
Dormant customers are those customers who are no longer in touch with the company. Their engagement with the brand is limited. These customers are on the verge of switching brands and must be accorded special attention. Their interest in the brand must be rekindled, beginning with personalized “We haven’t heard from you for quite some time” kinds of emails. Efforts to reaffirm the customer’s loyalty for the product must be made. Keep a watch on these “at-risk” customers or you will lose them to your competition.
- Have a Full-Fledged CRM in Place
A Customer Relations Management platform is much more than a database of clients. It is a repository of customer information and a history of their brand affinities. Using CRM, customers can be segmented and profiled so that targeted remarketing efforts are possible. Buyer behaviour differs within the same brand, from product to product. CRM helps in mass and selective promotional activities. It helps tech companies to maintain a personal touch with a customer, using their geographic diversity and spread.
- Connect Your Customers and Create a Like-Minded Community
Tech companies with relevant online communities enjoy clients with better brand affinities. Customer retention strategies that involve reaching out individually are not very effective as these collective ones. These connect customers with one another and provide a means for organic and information-driven communication to breed on public forums. Social media groups and blogs are excellent ways to improve brand loyalty and also to optimize the business development process. User generated online content fares better than self-created content.
- Refine Your Email Marketing Strategies
The buyer journey must be tracked continuously and email marketing strategies must be adjusted in accordance with this. A client might have been a start-up at the beginning of a contract and is now incorporating. The same client must be approached from a different perspective so that they remain a loyalty leader instead of turning into a non-customer. Keep your communications calendar updated to avoid this.
Retention marketing has evolved to be the King of all tech-based marketing activities. Losing existing customers is twice as painful as losing a new prospect, because with churn, a lost customer takes away a slice of credibility and brand value. Technology based companies are the easiest threatened by competition and must find organic ways of keeping their customers loyal to their unique propositions.