A customer retention management team is at the heart of rising sales volumes and a growing business. Profits are just one positive aspect of retention and loyalty. But there are so many others. Customer retention management teams can shape the entire growth trajectory of the company and propel it forward, serving as a catalyst for boundless growth. Here are the many benefits of having a skilled customer retention management team on board.
#1 Retention Beats Acquisition
The oldest adage in marketing is that it costs five times as much to acquire a new customer than retain loyal clients. The fact remains true even to date. It is more cost effective to keep people in the fold rather than bringing in fresh customers. Plenty of research has pointed the way for cost benefits of retention as against acquisition. Research by Forrester has revealed that retention is definitely the more economically viable of the two.
#2 Loyal Customers = More Profits
The equation is simple. Not only does customer retention management cost less, it even offers more returns. As per research, engaged customers are likely to make more frequent purchases 90% of the time, spend 60% more on transactions and 5 times more likely to show brand loyalty in the future. They also deliver 23% more revenue and accrue greater profits for the business. Loyal customers may yield profits, but their loyalty should not be taken for granted. This is why a world-class client retention team ensures customers derive lifetime value and contribute to long-term revenue, not just a day’s profits. The flip-side is equally important to consider. Actively disengaged customers cost a brand 13% of its revenue.
#3 Brands That Are In Stand Out
Customers interact with a wide number of brands on a daily basis. Value their patronage by offering a dedicated team to meet all their requirements. Brands need to focus on retention for growth and teams can bring this about. Considering that the average customer sees over 10, 000 marketing messages in a day, but engages only with a few of them, continual engagement is when the customer feels a sense of connectedness with the brand. Rather than unique selling propositions, unique retention propositions matter way more.
#4 Earn More Word-of-Mouth Publicity
With retention teams at work, loyal customers can be your most reliable brand advocates. They are the best source of new business as well. Bringing in customers through endorsements and referrals, loyal customers are a veritable gold mine for the business that seeks to shine. And good teams can accelerate customer loyalty to a new high. People are strongly influenced by referrals and word-of-mouth publicity thanks to online and mobile as well as social media marketing. Millennials are particularly known for influencing brand preferences online. A skilled team can work its magic and trigger a viral marketing campaign and solid ROI.
#5 Engaged Customers= More Feedback
Feedback forms the critical success factor for a business. Customers who provide feedback need to be managed. A team can work round-the-clock to provide more feedback and earn business in a repeated way. Issue resolution generally correlated with less likelihood of decreasing investment in the brand. Once brands prove their worth, customers are more likely to try new products or services from the brand as well. A team can work to evoke trust in your brand and build it through powerful narratives. An Accenture study documents that close to USD 1.6 trillion is lost in a year due to customer churn post a poor service experience. Folks are also likely to appreciate a brand that reaches out to them and targets them with promos.
#6 Innovate Retention Programs
Customer retention teams can work to bring about a core base of proven customers so that your brand can push its boundaries. New messaging, fresh product lines or a unique logo – these are just some of the innovations a retention team can think up and effectively execute. Existing customers are also 50% more likely to try new brands according to research. A team can go the distance when it comes to bringing out the best in a brand new product line and designing marketing messages that resonate with clients.
#7 Business Benefits
An array of profitable business activities from differentiation to branding, customer feedback, revenue generation, marketing, product development and more are the result of having a talented team on board. A focus on customer retention yields these favourable outcomes. Whether it involves designing rewards or loyalty programs, special promos, discount programs, advanced CRM systems or more, the team can make a difference in ways that count. Spend less on new business activities and earn a higher rate of return. The overall business impact is incalculable because so many different aspects are impacted.
#8 Delighting Customers
Earlier, the focus was on casting the net wide and catching a lot of client attention. Now, the focus is on personalisation and catering to the niche. It’s all about using different touchpoints to interact with customers and create an experience that is tailor-made for the client. This keeps customers happy, makes them feel they know your brand and creates awareness about products and services. A low retention rate can impact the growth of an organisation in myriad ways. Retention teams actively work towards delighting customers and keeping them around.
A Business Insider survey with multiple CEOs found that better customer experiences was the second most important priority, right behind revenue generation. The happiness of customers is related to revenue of the business. When customers leave, they take revenue with them. Considering the correlation, having a qualified and professional retention management team by your side is critical. NGData even estimates customer retention is faster and cheaper than customer acquisition. Considering a lion’s share of 80% of the profits come from 20% of existing clients, the value of a retention management team should not be underestimated.
As per Kolksy, around 67% of consumers list negative customer experiences as a prime factor for leaving a brand. Zendesk further estimated that nearly 85% of customers who have a bad experience with a brand warn others about it too. Retention is as much about reputation management as it is about rewards. A quality customer retention management team understands that the easier it is for customers to interact with a business, the higher is the level of loyalty.