Customer retention software is any Internet based program designed to promote repeat purchases.
Let’s face it - as a company, getting new business is fun. There’s nothing like the excitement of landing that new client. But why don’t we get as excited about repeat business? Research conducted by the father of Net Promoter Score, Frederick Reichheld of Bain & Company, shows an increase in customer retention rates of just 5% can increase profits by more than 25%! At the end of the day, it is more cost effective to keep a current customer than to attract a new one.
Customer retention software is a tool that helps you understand where each customer is in their buying process so that you can automatically optimize your communications with them. A personalized message, offer, or reward delivered at the right time is a highly effective way to engage your customer and potentially earn their business – all through a customer retention software online dashboard.
Customer retention is a measure of how much of a company’s business is repeat customers. It is the company’s ability to retain customers over a given period of time. Ideally, every customer would have such a wonderful experience purchasing from you that they definitely buy from you the next time they need your service. However, this is rarely the case. Businesses need to build ongoing, personal relationships with customers in order to retain them. This can be achieved through customer retention software.
These reasons can all be combatted (if not remedied) with customer retention software. The bottom line of each reason why your customer does not repeat-buy from you is that you did not appropriately follow up with that customer. You say, “But wait! I sent them a survey and they didn’t respond!” or “We don’t have the manpower to follow up with each individual customer!” or “I sent them a very nice thank you letter!”
Even if you did contact them after the sale, was it the appropriate time and message for that particular customer? In today’s world, people are drawn in so many directions. We receive constant messages on many devices, so we are more distracted than ever. As consumers, if we don’t receive the right message at the right time, it falls flat and gets ignored. As business owners, we need to strive to reach the right person at the right time with the right message in order to hold attention, engage the customer, and ultimately – retain them.
Yes, customer retention is hard to achieve. No, there is not one simple answer to how to keep customers coming back for more, but customer retention software can help bolster customer retention on many fronts, not using just one technique.
Delivering great customer experiences positions your business to develop loyal customers. But why are repeat customers important? Loyal customers tend to be the most profitable customers, requiring less effort and expense to support. Loyal customers tend to buy more from you, and as an existing customer each incremental sale requires little to no extra expense (again contributing to increased profit). And lastly, yet arguably most importantly, loyal customers can be your best (and lowest cost) way to promote your business and brand to others through reviews, testimonials and word-of-mouth.
We live in a world of big data. Data is collected on each of us every day in ways that we don’t even know are happening. The good thing is that customer retention software only tracks information that the customer allows – the contact information they provided to you and their interactions with your company. Compiling these data metrics into one system allows you to track customer lifetime value as never before. The lifetime value (LTV) of a customer is the cumulative profit of a single customer throughout their entire relationship with your company - whether the relationship lasts 1 day or 1 decade. In addition, you can track the Return on Investment (ROI) for the cost of implementing customer retention software because you can track each customer’s decision journey, where they went off-track, and how many customers were retained.
Customer retention software engages customers, usually via email, to give you feedback so you know where you stand and what you need to do in order to have the opportunity to enjoy repeat business from the customer. Customer retention software will compile and present metrics about your customer’s interactions with your business and brand. It helps you understand which customers are more likely to be retained than others. The system helps to predict and delivers the best message and content directly to your customer. Ultimately the best customer retention software allows you to build more intimate relationships with your customers based on their previous experiences throughout their journey with your business.
For example, LoyaltyLoop's customer retention software not only presents metrics about your customer's attitudes and feelings about doing business with you, but will help you engage customers to post reviews online, and provide you with fresh customer testimonials. Having happy customers tell their stories about why they love doing business with you in their own words on Google, Facebook and your website will help you retain other customers. Plus, when LoyaltyLoop identifies a customer who has had a less than satisfying experience, you'll be alerted immediately so you can proactively manage the situation and work to retain the customer.
Yes! For better or worse, today’s consumers live on their digital devices. Those devices are a hyper competitive marketplace for attention and if you aren’t reaching your customers digitally, you aren’t reaching them. Diversifying your messaging with customer retention software is the only way to ensure eyeballs on your brand and have a chance at customer retention.
Yes, in-person relationships are the gold-standard for customer retention. But when that customer walks out of your shop, you are out of sight, out of mind. Customer retention software does not replace personal customer relationships, it builds on them.
Customers want to be loyal to you. They devoted a lot of time researching and comparing brands before purchasing, so they are invested in time and emotions at the time of sale. What happens immediately after the purchase is the ultimate opportunity in retaining customers. Continue the conversation and give them a reason to keep coming back. Go beyond the transactional purchase with customer retention software and create a lasting relationship with your customers.
Help your customers, help yourself – invest in Customer Retention Software.
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Net Promoter, Net Promoter System, Net Promoter Score, and NPS are registered trademarks of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc. LoyaltyLoop and SurveyAdvantage are registered trademarks of LoyaltyLoop, LLC. All other marks are the property of their respective owners. All rights reserved.
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