One statement I learned years ago that I will always remember is “It’s easier & cheaper to keep a customer than get a new customer.” Growing your business and acquiring new clients is very important but don’t forget those that you have already won over. According to studies, the probability to sell to an existing client is 60%-70% while selling to a new client is 5%-20%. Since the probability of selling to a current customer is so high, why are we not spending time and money on keeping them happy and selling them more products?
A Customer Relationship Management Strategy will help cultivate your clients and increase their CLV (Customer Lifetime Value).
A few things to do during your strategy are:
- Track your customer activities: where they are, how often are they buying, how long do they stay a client, how often do they need customer support, etc.
Analyze your customer experience
- When a customer has a support question what is the procedure they need to take to get it answered?
- When a customer purchases a new product/service do you create positive post-purchase communication, in order to engage customers and make the process as efficient as possible. Do you send thank you note, do you check in on the new purchase, etc?
- Will your customers recommend your product/service?
Utilize a CRM Tool
- A good SaaS is important in keeping track of your customers and communicating with them
- Keeping accurate records of customer purchases, needs and concerns can benefit a customer relationship
- Automation of the everyday tasks will take the burden off the shoulders of your employees
- Be realistic and set expectations. Specificity is essential in creating goals.
- What do you want your average CLV to be?
- What do you want your customer churn rate to be?
Focus on retaining customers as much as you work to acquire them in the first place. The more effort you put into keeping your current customers, the more revenue your business will generate.