Do you know how much money you are currently spending to attract new customers? If the number is anything like other businesses your size, it’s probably a big one. The truth is, customer acquisition is costing businesses thousands more dollars than is necessary. Every time you target a new customer, you are pouring time, money and resources into that customer… and neglecting the customers you already have.
Recent research has unveiled that it costs a business 6-7 times more to acquire a new customer than to retain an existing one. With business expenses rising and competition increasing, no one can afford to pay the price of winning new customers simply because they did not put the time and energy into their existing relationships. Finding the right solution, however, can be more challenging than you would think. While adopting time-proven customer service strategies can help on a surface level, there is a whole lot more that goes into customer relationship management than customer service. Your company needs to streamline the way you track customer information, anticipate customer problems and develop proactive responses to those problems, encourage collaboration among the different departments, and accurately account for your customer’s purchase and service history.
So, how can you achieve all of this in a cohesive manner?
The answer is simple: through customer relationship management (CRM) software.
CRM software puts the reigns back in your hands, allowing you to take full control of your customer relationships and steer where they are going. Designed to help you make sense of your customer data, a CRM system provides you with the tools you need to create quality and lasting customer relationships. Here are three ways a CRM system can help you increase your customer retention rates and inevitably increase your profitability as well.
- CRM improves the experience.
Contrary to popular belief, customers are not too fond of having to form new relationships with new companies. Many customers leave because their customer experience is not what they are looking for, so in order to keep your customers from leaving you need to investigate ways to improve the overall customer experience. CRM’s analytics and capabilities make it easy for you to quickly identify the holes in your customer relationship strategy so you can improve the service you provide for your customers.
- CRM provides you with insight to better understand your customers’ needs. CRM is more than a system designed to hold all of your customer data. Designed to help you understand your customers by making sense of the data you collect, CRM software actually has many uses. It is equipped to provide you with information regarding customer behavior, buying patterns, preferences, and their entire history with your company. This data is instantly available to you within your CRM system, allowing you to better understand (and meet) customer expectations.
- CRM can help you identify and solve problems proactively.
CRM software allows you to easily identify changes in customer buying patterns or behavior so you can take a proactive approach to the situation. Many solutions can identify trouble long before your customers cancel their services, allowing you to properly investigate and solve issues rather than letting them go on and ruin your relationships and customer retention rates.
With so many technologies and proven strategies available, there is no excuse for allowing your customers to slip through the cracks. CRM software can help you determine a strategy for safeguarding your relationships so you do not have to invest the time and money in finding new customers. Contact us today to learn how you can keep a tight grip on your current relationships and save more of your hard-earned money.