Need better Customer Retention? Focus on Customer Experience.
As per the customer retention statistics of 2020, a mere 5% boost in customer retention can increase your profits by 25-95%. This is enlightening, but not surprising. Yet, so many B2B marketers erroneously believe ‘customer acquisition’ to be a better revenue-generation strategy rather than ‘customer retention.’ As per Review42.com, acquiring new customers costs 5 times as much as retaining existing ones. There is no doubt that customer retention should be any company’s top priority.
Retaining customers help your business in three ways. Firstly, a loyal customer will keep bringing recurring business to your enterprise. Secondly, onboarding a new customer always requires much more effort than getting a renewed contract from an old customer. Thirdly, old customers can bring in new customers through referrals or attract them through their testimonials.
Customer retention is closely intertwined with providing a rich buying/service experience to your customer. A good buying experience will automatically translate to better customer retention. So let’s look at the ways to increase customer retention in the B2B sphere –
1. Employ technology in assistance or service –
Identify the top issues that your customers face by analyzing the past data. Then create a stepwise problem resolution plan that your support team can use for resolving these frequent issues in the future. Train your support staff well. Make use of AI-based virtual assistants to automate or smoothen your customer onboarding process. Further ahead, install a chatbot service on your website which can help your customers to raise, or in some cases resolve, the problems as fast as possible. To top it all off, you can provide premium customer service and support to your most valued customer.
2. Provide business insights and educate your customer –
Subscribing your customers to your newsletter is just the first step. Your newsletters or emails should highlight trends or provide new industry insights to your customers. Have a team of content creators that can research and create content for different business domains related to the customers you serve. That will establish your authority and also educate your customers. Also, make sure that you are keeping your customer aware of all the future upgrades which you are adding in your product/service so that they can employ these upgrades to their advantage.
3. Make it easy to receive feedback from your customer –
Feedbacks are valuable because they make you aware of your improvement areas. But getting optimum feedback requires some planning. A plain email asking for feedback from your customer is bound to get too vague. On the other hand, sending them a feedback form with too many fields can be intimidating. In both cases, customers can give haphazard feedback which may not prove useful to you. Hence it’s essential to make the feedback process easier for them. You can ask for feedback at regular intervals from your customers instead of overwhelming them with an elaborate questionnaire at the end of the service term. Or you can make it less complicated by employing a numbered rating system. Besides that, you should design a feedback form/process in which the parameters of evaluation should directly correspond to your business processes. This will help you to know exactly which process needs improvement.
4. Always provide Value-Adds –
Everyone loves unexpected gifts. Customers in B2B are no different. Go the extra mile and provide a little more value than what the contract stipulates. Value-adds in the form of enhanced product features, extended warranty, free research papers, add-on services, free premium support will prove to your customers that you prioritize customer satisfaction. Such value-adds make a lasting impact on the customer and make them keep coming back for more business.