Why should you pay attention to customer Retention?
By Tripesh Das, Director Creative Factor.
“Customers are like mango trees, and if you nurture them right, they will bear enough fruits for you- year after year.”
All businesses require a consistent source of earnings for both survival and growth, and retaining customers can assist companies in achieving this. Consider this question, if any company keeps all its customer since its inception, what will be its current position in the market?
Many studies have indicated that your existing customer is more likely to accept a new idea than a new customer. Statistical data proves that customer retention can immensely increase profitability by up to 90%. Despite the facts presented, many organisations fail to focus on their existing customers and focus their energies on acquiring new customers.
Paying Attention to Customer Churn Rate.
Intelligent businesses worldwide are leveraging big data to understand the various opportunities from their customer churn rate. For example, by studying the churn data by segment, you can avert the likelihood of a departing customer segment. A churn rate is a good starting point to derive the retention strategy.
Customer Centricity Over Customer Loyalty.
Customer loyalty through rebates, discounts are an expensive proposition for any company regardless of its size. Being relevant to your customer is a much better business approach. When a company thinks from the point of view of its customers, it exceeds customer expectations. When you approach your business from customer-centricity, your success rate improves dramatically, allowing the company to reinvent itself and enhance relevance to its customers.
Every customer is UNIQUE.
Mass customisation is the most “in” thing for businesses today. When a company recognises the opportunities of mass customisation, clubbed with one-to-one marketing, it retains and attracts customers simultaneously. It begins with a deeper understanding of the customer, and the learnings are then applied to co-create the solution. Starbucks is the early adopter of mass customisation. Still, this trend is not limited to only B2C companies, and it can be leveraged as an effective strategy for B2B companies as well. When customers invest their time educating their service provider, they are more likely to avoid teaching a new supplier.
Customer Intelligence is not a stereotypical segment.
It’s not just about creating a fantastic product or solution; it’s also about the right timing. Account-based marketing (ABM) aids businesses to identify and define each customer’s journey and create an experience that adds value to the customer’s purpose. To meet the ABM goals, organisations must now focus on analysing client databases beyond names and email addresses and divert their efforts towards developing a customised tool to capture more valuable intelligence about the customers and their pursuits. It requires a combined effort between the sales and marketing teams to create a fabulous customer journey while proactively communicating and developing solutions.
Since 2009, Creative Factor has worked with its customers, co-creating comprehensive marketing solutions to meet its customer’s strategic goals. Over the years, we have evolved our practices along with the world and acquired in-depth knowledge of the B2B marketing world. Today, we have integrated the complete lifecycle loop of the customer journey from acquisition to purchase and retention to purchase cycle.
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