Why Is CRM One of the Most Powerful Customer Retention Tools

My Post (15)Customer retention is a key aspect that all businesses should strive for, and yet not enough understand just how important it is to foster relationships with long-term buyers. Too many business owners don’t think beyond acquiring customers or keeping their existing ones.

Unlike acquisition, customer retention is harder to achieve. Converting new customers to loyal consumers requires personalization, smart targeting, and proper implementation. Thankfully, there are tools that can help you do these things, and more.

A customer relationship management (CRM) platform is one of the best customer-centric tools on the market that will help redefine the way you interact with your buyers.

So, why is CRM considered the best customer retention tool? With functions like lead scoring, email marketing, and analytics, decision making is easier and customer service becomes more streamlined. These things result in improved customer experience, which can convert buyers into long-term consumers.

Why Customer Retention Matters

Customer retention is the art of keeping existing customers and increasing their lifetime value by becoming their go-to source on goods and services. To outsiders, it might seem like acquiring new customers is more crucial than keeping old ones. After all, getting a new customer means acquiring someone new who can spend on your business, right?

While that’s technically true, you have to remember that customer retention and customer acquisition provide different values.

Acquiring new customers isn’t so straightforward – you are likely spending some of your resources on ads and marketing campaigns in order to target new leads and convert them to new users or buyers.

On the other hand, existing customers cost zero resources in exchange for their business. Think about it this way, if your average ad spend comes down to $100 per customer, a buyer who purchases your product or service for $200 will have an initial value of $100. If this customer buys goods and services worth another $200, they would have repaid their acquisition costs and given you $300 in profits.

Acquisition VS Retention: Which One Is Cheaper

Businesses can spend anywhere from a couple hundred to thousands of dollars on ads, which could drive some new traffic and revenue into your business.

As effective as this strategy may seem, keep in mind that profit and revenue aren’t essentially the same thing. If you’re not careful, your company could end up spending more than what the average customer is worth when acquiring new customers.

Customer retention isn’t just about saving on ads. Here are other reasons why you should consider making this your new top priority:

  • Long-term customers tend to spend an average of 67% more than they did during their first year. Existing customers will eventually trust you more and keep coming back for related products and services. In the long run, they’ll start buying products or services that had nothing to do with their initial purchase, increasing their overall lifetime value.
  • Loyal customers remain loyal for a long time. In a survey, 77% of customers said they remained in business with a company for more than 10 years. If a majority of your customer base consists of existing customers, you’ll have a consistent revenue stream while saving on acquisition costs.
  • Long-term buyers not only increase their own value but attract new buyers. Customers with an emotional relationship with a brand not only have a 306% higher lifetime value but are 71% likelier to recommend the brand with friends and family.
  • Retaining customers is one of the easiest ways to increase profits while cutting down costs. At least a 5% increase in customer retention leads to a 25% increase in profit.

Customer Retention Challenges

Creating a customer strategy isn’t straightforward, otherwise more businesses would be doing it. It all begins with knowing what the common roadblocks are.

Retention strategies differ depending on your industry, business size, and customer base, but the common issues that increase customer churn more or less remain the same:

1) Terrible Customer Service

Bad customer service is the quickest way to lose existing customers. Whether it’s unanswered inquiries or rude customer reps, bad customer service can easily convince your buyers to look the other way.

In such a saturated market, buyers won’t have a hard time replacing your company with another one that has better customer service. In fact, customer service is so important that some buyers base their decisions on interactions with the company alone. A survey reveals that 72% of customers remain loyal with a brand because of friendly reps. That’s not all; a whopping 93% of buyers are likely to make repeat purchases with the same brand following a great customer experience.

On the other hand, good customer service isn’t just about being nice to your customers. Your representatives’ ability to actually provide knowledgeable, helpful solutions, while being time-efficient are two hallmarks of amazing customer experience.

2) No Improvements On Products and Service

This is especially true for B2Bs. Over time, your customers will start looking for more complex solutions as they start to develop more comprehensive needs. If you don’t evolve with your customers, there will eventually be other businesses that can offer what you can’t.

Good customer service isn’t just about adding new value. Most of the time, customer retention can be improved simply by listening to what they’re saying based on goods and services that already exist.

Customer testimonials are a great way to measure customer loyalty. Using social media, polls, and email marketing campaigns, you can gauge customer satisfaction and understand how they perceive your service. If you have these channels open but still fail to provide improvements, your customers will eventually feel like you aren’t listening to them and move on with another provider.

3) You Don’t Show Appreciation

Customers want a dynamic relationship with businesses. This means that buyers want to work with businesses who know what they’re worth. If you’re offering a loyal customer of more than two years the same discounts and deals you’re offering a new buyer, your existing customers won’t feel appreciated, which may cause them to feel a little bit neglected.

Appreciation isn’t just about rewarding them, either. At the very least, some form of engagement between your brand and the customers is needed to sustain the relationship. If your interactions are strictly transactional, your customers won’t develop an emotional attachment to your brand, making it harder to convert them into loyal customers.

The Role Of CRM In Customer Retention

Customer retention is a multifaceted aspect of sales. There are so many factors that go into customer loyalty, which is exactly what makes it overwhelming.

Thankfully, there are tools that make managing relationships with customers easier. Nowadays, most customers are expecting personalized, targeted service, and it’s difficult to do that without the appropriate tools to make customer support more seamless.

A customer relationship management (CRM) software is a tool that can help you manage relationships with clients and stay on top of each person’s interaction with your business. This way, fostering relationships and converting individual customers to local buyers becomes more manageable. – Read more

How to Maintain Communication During Store Closures

My Post (17)We are living in a time when a retailer’s ability to communicate with customers has never been more important, or more challenging. Many businesses were shut down without adequate time to prepare to handle customer inquiries while physical stores and/or physical contact centers are now closed. Customers, however, still expect quick service and first call resolution, not phone numbers or voicemails that go unanswered.

If you’re a retail business owner, you can keep up your communication with customers and continue to address customer inquiries—from the ordinary to complex—with cloud communications and contact center solutions. Here’s how to make it happen.

Customer Call Routing Ensures 24/7 Coverage for Retail Businesses

Most retailers have closed their brick-and-mortar stores and shut down corporate offices—but business operations must continue, remotely. What’s your plan for keeping communications flowing to and from customers, employees, and executives, not to mention individual stores and globally dispersed workers?

Manual call forwarding is a lot more challenging than it can seem at first glance—especially in a remote work environment—and the sheer scale of incoming customer calls can be difficult to manage. Look for a cloud contact center platform with advanced call routing options, such as skills-based call routing, which lets managers create rules to automatically allocate calls to the right customer representative, based on their level of skill and experience.

It’s also important to be ready and able to communicate with customers on their channel of choice, which, for many customers nowadays, is social media. You’ll want to implement an omnichannel communication platform with social listening capabilities, so your team gets notified every time your brand is mentioned on social media and they can respond to consumer queries voiced on social media in a shorter time frame.

Forward Store Calls to Remote Agents 

When customers dial local (closed) stores, their numbers must quickly be forwarded to new locations so your remote workers can then answer calls on their own phones. If retailers use regional carriers for their stores (e.g., AT&T, Verizon) that have different call forwarding capabilities and rules, this can lead to an administrative nightmare of dropped calls, crossed signals, and missed customer service requests.

A cloud-based centralized phone system can help your team manage inbound calls. Call routing helps your team stay organized in times of chaos by creating clarity around call management as your incoming call load increases. A softphone can remotely transform any PC or Mac into a sophisticated call controller, so you can begin managing and delegating calls to employees’ cell phones without the addition of any new hardware.

Call Routing for Team Leaders

Generally, call delegation is used by administrative assistants to route calls to executives (or other staff) for whom they work. Retailers can take advantage of this feature by using call delegation to put one senior customer service executive or corporate staff member in charge of routing calls to up to 10 assistants. At the central console, your senior exec can just pick what numbers they want to forward and to whom—they can even set rules to route calls from certain numbers to a specific employee or voicemail system.

The benefit a cloud solution provides is that the assistant can still perform their duties while working from home, thereby protecting executives from disruptions at a critical time.

Respond to Customer Queries on Every Channel

Delegating calls is one thing, but what about when a customer leaves a voicemail message or asks for a phone call to follow up on a customer service request that was submitted digitally? It’s easy for open customer cases to fall through the cracks if you don’t have a system to assign customer queries to specific employees. Fortunately, some cloud contact center solutions also let your customer service managers assign tasks to specific employees in their app, make notes, share files, add team members, and request evidence of task completion from specific employees. – Read more

Learn More About Ringcentral

VPS vs Dedicated Servers – Which should you choose?

My Post (16)When researching various hosting providers and plans to choose from, you will have probably come across many different kinds of hosting models such as cloud servers, dedicated servers, Virtual Private Servers (VPS), or shared hosting. While any of these plans would likely fulfill your needs, it’s still important to choose the service that would suit your requirements while not costing you too much.

Most starter websites would be suitable for a shared hosting plan, but if you’re hosting many websites, specialised applications, or you require a specific hosting environment, then you’re going to need something different.

In many scenarios this will leave you with two feasible options – VPS Hosting, or a Dedicated Server.

But before making a decision going forward with a hosting plan, it’s important to familiarize yourself with the differences between VPS hosting and a dedicated server, so that you can better understand which plan would be more suitable for you.

In this post we aim to explain what web hosting is, the differences between VPS Hosting and Dedicated Servers, and how to decide which type of hosting is more suitable for you.

An Introduction to Hosting

If we want to gain a better understanding of the differences between VPS plans and dedicated servers, we need to first comprehend the fundamentals of how web hosting itself works.

A web host is how and where your website lives. The way this works is your domain name gets assigned to a web hosting package which is actually server space. The server is owned by a hosting company who manages the server for you.

Web hosting is essentially the server space that a web host provides, which holds your website and allows users to access it over the internet.

Your web hosting account isn’t just limited to serving websites to visitors however. We find that many of our VPS and Dedicated Server customers implement applications, development work, or specialized software – instead of a website.

In other words, your web host provides your web hosting.

It’s important not to mix the two up, so here’s a distinction between the two:

  • A web host is a business that provides the technologies and services needed for your website to be viewed on the Internet.
  • Web hosting refers to the product of hosting itself, which is essentially rented space on a server in return for a monthly or annual fee.

Without web hosting, your website wouldn’t be accessible to the rest of the internet. Having a domain name and good web hosting is essential for any website to succeed.

Now that we’ve covered the fundamentals of web hosting, let’s go over exactly what VPS hosting and Dedicated Servers are.

What is VPS Hosting?

A Virtual Private Server, or VPS, is a virtual machine that gives all the features of a full dedicated server within a fully virtualized environment.

With a VPS server, there will be one physical controlling server, which is then separated into virtual partitions which can then be treated as individual systems. Each virtual server has it’s on resources, storage space, memory, and operating system. You can have a number of virtual private servers on one physical server and it is possible to have different operating systems for each VPS.

Customers can typically select the operating system, memory, storage capacity, and processing power of their VPS plan. This can then often be upgraded or downgraded at any time; since the physical hardware doesn’t need refitting, the resource limits can be easily and quickly changed.

VPS plans are an excellent choice for any growing business that combines the affordability of shared hosting with the improved features and benefits of dedicated hosting – without the higher costs and additional technical knowledge necessary. VPS plans don’t typically require much technical know-how, since the virtual server is configured by the hosting provider, so it’s often easier to use for beginners or teams who don’t have dedicated IT staff. – Read more

Learn More About UKhost4u