A strong customer retention rate is often the key to small business success. Here’s why:
- 80% of a small business’ revenue will come from just 20% of their customer base
- Repeat customers spend 67% more than new ones
- It costs 5 times more to get a new customer than it does to keep an existing one
- The probability of selling to an existing customer is 3+ times higher than selling to a new customer
All of this makes knowing and improving your customer retention rate a pressing priority for small businesses.
Before we dive into how customer management software solutions like Method:CRM can help you retain more customers, let’s first review what your customer retention rate is.
Your customer retention rate simply looks at the percentage of your customer base that keeps doing business with you over a certain period of time.
When it comes to calculating your customer retention rate, you will need to divide the number of customers who have made a repeat purchase in a given time frame by your total number of customers.
Doing so will let you know:
- The percentage of customers you’re losing
- How much sales pipeline you need to recuperate
- Which customers you need to try to win back
Now that we’ve covered the basics, let’s look at how Method:CRM can benefit your customer acquisition and retention strategy.
How Method:CRM can increase your customer retention rate
1. Use customer portals to make doing business with you as easy as possible
Method:CRM’s portals are a great way to increase your customer retention rate as they make it simple for your customers to get the services they need. Whether that’s making a repeat purchase with you or reviewing an estimate for a future order, portals give your customers the convenience of doing business with you at any time, from anywhere.
Here’s an example of how they work.
The self-serve nature of Method:CRM’s portals:
- Gives customers 24/7 access to your business
- Eliminates friction during the buying process
- Ensures your customers don’t turn to your competitors
Better yet, you can customize Method’s portals to house support resources such as FAQs, product guides, and community forums to make sure your customers get as much value out of your products or services as possible.
An added bonus is that Method’s portals not only improve your customer’s experience but they also automate your customer service and sales workflows, freeing up your employees to focus on what matters most — growing your business.
2. Provide a personalized customer experience
A huge differentiator for loyal customers is how they’re treated at the places they do business with. In fact, this is a must-have for 80% of buyers who only shop at businesses that provide them with a personalized experience.
Luckily, Method:CRM can help you meet these expectations. As a goldmine of customer information, Method:CRM stores details like your customer’s:
- Transaction history
- Communication preferences
- Buying habits
- Favorite products
- Demographic data
This is all information you can use to tailor your services and offerings to what you know will interest your customer and result in new sales.
The 360-degree view that Method:CRM gives you for each of your customers allows you to always provide VIP treatment to your customer base. From birthday discounts to early access to sales on their favorite products, using Method:CRM is a surefire way to increase your customer retention rate.
Plus, with all of this information easily accessible and instantly updated, Method:CRM also helps you serve your customers faster as they no longer need to explain every detail of their issue to every employee they deal with. Instead, every member of your team can see a full profile of each customer who comes to them for help in just a few clicks.
3. Stay top of mind with ongoing nurture campaigns
When it comes to achieving higher customer retention rates, it’s all about nurturing your customer base. Whether that’s via email or on the phone, Method:CRM simplifies this process by:
- Keeping track of every nurture activity you perform
- Instantly scheduling follow-up activities with existing customers
- Making it easy to know exactly what was discussed with a customer
- Highlighting the type of promotions and messages that a customer engages with
Plus, with Method:CRM’s email campaigns app, you can nurture more customers faster and with less effort. From custom email templates to segmenting contacts for personalized communication, Method:CRM makes it much easier to drive repeat business and retain customers.
Not to mention that Method:CRM’s integrations with popular communication tools like Gmail, Outlook, and Mailchimp make it easy to keep track of your nurture efforts regardless of how you connect with your customers.
Recap: How to improve your customer retention rate
To scale your customer retention strategy, you need the help of a CRM solution like Method.
Here’s a quick summary of how Method:CRM can help you increase your customer retention rate long-term.
- Use portals to reduce friction for your buyers and give your customers the convenience of 24/7 online self-service.
- Get a 360-degree view of your customers and use these insights to deliver an experience that keeps them coming back.
- Execute and automate a data-driven customer nurture strategy to increase your repeat business.
To improve your customer retention rate, sign up for your free 30-day trial of Method:CRM.
Image credit: Jopwell via Pexels