What Can I Do to Increase My Retention Rate?

Enhancing customer retention is not always a simple process. It requires time and diligence to identify the issues impairing your retention effort. You have to be patient and perseverant to implement the necessary changes. We listed some strategies that may help increase your customer retention rate and overall business success.

1. Assess that They are a Proper Fit in the First Place

Many businesses choose to conduct cold calls in their target markets to connect with as many potential clients as possible, regardless of fit.

Utilizing an account-based strategy – in which you research and analyze your clients’ purchasing power behaviour- makes sense because you can determine if they are the right audience o your business.

Intelligent businesses understand that it is more beneficial to focus on clients who fit their ideal customer persona and have the potential to become long-term partners. It is more challenging to find a new prospect rather than to maintain a regular one. There is a 60% to 70% probability of selling to the existing customer and only a 5%-20% probability of selling to a new customer.

2. Establish Specific Expectations

If your customer retention rate is not where you want it to be, it’s critical to examine the relationship’s expectations. If there is a misunderstanding between what the customer believes they should receive and what you believe you should provide, the customer may become disengaged and unenthusiastic about your products and services.

Ensure that your customer support team communicates with clients consistently and that they clearly outline the information they will provide. This way, everyone will be on the same page and be able to collaborate on the necessary goals and action items for success.

How to Increase Customer Retention

3. Make Customer Success a Priority

You may have the best service imaginable, but if it does not assist your customers in accomplishing their objectives, it won’t work.

Communicate openly with your customers about the metrics they wish to achieve and how you can assist them. Utilize a dedicated customer success team to apply the process and assist you in resolving issues. This team will eventually leverage their expertise to grow relationships and increase customers’ lifetime value and product purchases.

When customers are satisfied with the direction their revenues are taking them, they are more likely to reflect favourably on your company’s contribution to their success. 

If your interactions with customers resulted in dissatisfaction, apply this information to resolve customer issues. Employing this data to fine-tune your sales process and update your training methods will enable you to communicate effectively with future customers and avoid similar problems.

4. Emphasize Experience

Even the best sales team in the world will struggle to attract enough clients to keep your business growing if you do not offer a high-quality, easy-to-use product.

17% of customers are willing to abandon their purchase after a single negative experience. This means that your margin for error is extremely small, and you must constantly monitor how customers interact with your product. Keep an eye out for pain points, seek ways to improve, and ensure that you’re selling a product that works and that people want.

Additionally, analyze how people choose to interact with your business to determine whether or not things are going well. For instance, if a customer has a problem, they may wish to attempt simple problem-solving on their own first and then consult an expert if the issue persists.

According to research, 82% of Americans want the opportunity for human interaction when a product malfunctions. If this is the case with your client base, ensuring that their experience meets their expectations and providing them with the resources necessary to remain engaged with your product is critical.

5. Conduct Analyses, Surveys, and Ask Questions Throughout the Sales Process

Sales are similar to courtship; clients have grown accustomed to you answering every question, testing their responses, and generally hanging on their every word during the sales process.

If your approach significantly changes following the sales process, it may be difficult to retain your customers.

Regular satisfaction surveys, as well as fact-gathering conversations, can assist you in ensuring that expectations are met. Additionally, by utilizing these information-gathering tools, you can stay ahead of issues rather than waiting until your customer is disengaged and ready to move on before attempting to resolve them.

If data is the brain, communication is the heart – and neither should be used in isolation to determine your customer retention potential.

For instance, you may receive positive feedback from clients but see a very different picture when examining your customer retention rate. If you notice inconsistencies, conduct research and use your findings to improve your retention.

6. Maintain a Sale and Upselling Strategy

Again, similar to a courtship, you must also maintain the spark in your client relationships. Ensure that you’re establishing processes to keep them connected to you and your offerings. 

For instance:

  • Follow up with an offer to sell an upgrade that will improve their experience or success with your current product.
  • Maintain email campaigns that are focused on new features you’ve added, client success stories, and so forth.
  • Communicate frequently and in a manner that adds value. Each time you communicate with a customer, whether via email, your website, a chat forum, or by phone, you have another opportunity to tell your product’s story, emphasize the unique value you provide and earn their loyalty.
  • Create forums for user conversations, whether it’s a moderated group on social media or a self-hosted forum. In these settings, you can demonstrate how other clients are successfully utilizing your products and generate positive feedback and connectivity among your clients.

How Can Dalos Help You Increase Your Retention Rate?

An interactive and automated SaaS platform, Dalos gives you the ability to retain and sustain your client base through streamlined automation and intelligent data analytics. With an easy-to-use and innovative customer portal, you will be able to improve customer experience, to cultivate and nurture ongoing relationships with your clients.