One-and-done marketing doesn’t cut it. It often takes five or more times the amount of resources for businesses to find and keep customers. To
retain customers in to-days competitive market, we all need to foster lasting and meaningful relationships with existing customers.
Rewarding and appreciating your supportive customers is where it all starts – look after your best customers, as this relationship can live on for
a long time.
So often, these strategies get ignored, and new shoppers are targeted. Often brands ignore target marketing and throw their nets out wide.
This might work for fishing but is expensive in reeling in new customers while ignoring the existing ones.
What Is Customer Retention?
Customers who deliberately pay for your products more than once over a period of time, are customers who need your tender loving care.
A single loyal customer buying several products over a year is of more value to you than the single purchaser.
You can rely on a loyal customer far more than a one-off buyer whom you know little about their habits. Focus on making your existing
clients happier by making them part of your family and building relationships.
Why Customer Retention Matters
Customer retention measures how effectively companies are at keeping existing customers happy. It also boosts loyalty and increases
ROI. It is more cost-effective to retain customers than acquire new ones; returning customers spend more, buy more often, and refer
friends.
The numbers don’t lie: Retaining customers brings companies a ton of ROI. Customer retention is essential to succeed in the B2B SaaS
industry.
B2B companies will have to bank on customer retention as a critical strategy to achieve long-term growth. Customer retention is also
an essential driver of sustainable business value. The math is quite simple – the more customers you retain, the more weight and
growth you have.
Considering this, B2B companies need to have fail-proof customer retention strategies.
Your Customer Retention Rate (CRR)
Do you know your customer retention rate? To build a sound strategy, this CRR factor is essential to you. You need to know, as a
percentage, how many existing clients you retain over a specific time.
Use the formula: CRR = (E-N/S)x 100.
S=starting customers. E=number of clients you have at the end of the period. N=new customers gained.
Developing long-term goals to increase this figure becomes far easier. Let us look at some strategies.
