A recent global study of 300 retail, ecommerce and media executives showed that companies choosing to increase their investments in customer retention enjoy significant advantages in boosting their market share over those who choose to invest primarily in customer acquisition instead.
Retaining customers is crucial in SaaS product sales. To succeed, you'll need the ability of keeping in touch with people who are already using your products. That's the only way to establishing long-term and sustainable growth for your business.
Customer retention is much cheaper than generating new leads. Finding new customers takes up plenty of resources which you could allocate in maintaining your relationship with the existing customers. Grab them, wow them, and keep on wowing them.
Here are 7 solid customer retention strategies to help you do just that and boost your bottom line in the process.
1. Get Back to Basics
How did you get your customers in the first place? What drew them in? You already know that approach worked, and there’s no need to fix something that isn’t broken. Retain them by continually offering the same value – it’s what they already liked about you.
It's smart to conduct customer surveys and directly ask people why they have become your customers. That's how you determine what the leading factor that influenced their big decision.
Crafting a customer survey that gets you all the information you need can be tricky. Have a look at this post by Gregory Ciotti from HelpScout to learn how to create a customer survey that brings you plenty of valuable feedback.
2. Stack it Up
Upselling is the best way to make the most of any transaction. If you price upsells affordably and offers more of what your customer needs for a reasonable price, you’ll be raising the dollar amount for each transaction.
If your customers feel as though they’re getting a deal, why would they go elsewhere? An upsell that’s a great deal will incentivize their loyalty. They aren’t going to find what they’re getting for a better deal with your competitors.
If you're having doubts about the benefits of upselling, read this post from Neil Patel where he dissects Amazon's upsell strategy.
3. Guide Them
Now that they have your product, how are they going to use it? If they find that they don’t understand how to work your software, there’s no reason for them to continue their relationship with you.
That's why you should start working on your content marketing strategy. That's right – marketers and sales people need to unite when it comes to customer retention.
Provide a lot of useful tools and tutorials to walk people through the process. They’ll get used to your product and appreciate it a little more once they’re able to fully benefit from all its capabilities.
That's especially important if you're in a B2B sector. According to this survey, marketers are engaged in content marketing more than ever and over a half of them reports the growth of their campaigns thanks to higher quality of content and better strategy. Don't get left behind and join the content marketing momentum.
4. Provide Great Support
According to a survey conducted by American Express, 78% of consumers report abandoning a transaction or not making an intended purchase because of a poor service experience.
When someone has a comment, complaint, or question, who is there to respond to them? If customers find that your support isn’t as responsive as they’d like, they’re going to want to switch to a competitor who can walk them through the process.
Work on cutting down your response time, but don't forget about quality – this study showed that in email responses, quality is just as important as timeliness.
No one should have to wait more than a day for a response. If you can enable live customer service chat on your website and provide instantaneous solutions, that’s even better.
5. Listen To Your Customers
For every customer complaint, there are 26 other equally unhappy customers who have remained silent.
Customer feedback is very valuable. Make sure to accurately track complaints and fix them in a timely manner. If someone takes issue with your software, don’t spend your time explaining a workaround.
Make it easy for customers to give feedback and tell you about problems they are having. Collect all of your feedback and listen to what your customers are saying. It takes time to sift through feedback, but its value makes the effort worth it.
If your customers have an idea that they believe will improve your software, put that idea to good use. You’ll be allowing your customers to shape the direction of your future. People know what they want – all you need to do is make it easy for them to get it.
6. You’re More than Just Your Product – Let People Know That
The thing about software as a service is that it’s both of things at once – it's software and service.
The problem with pushing the software angle is that you’re marketing yourself as a program. Who is behind it? Why is this software working for your customers? You need to fix this point before beginning to think about service.
And that's the most important part of your sales strategy. Your biggest selling point is the service you offer. Don't forget about that. Always lead with that foot. You’ll inspire more confidence among your customers by frequently acknowledging that there are real people behind the scenes who are working to make it all work.
You're more than your product. Your customers should know that your company is made up of a fantastic team of passionate people. Use social media to post updates about your team, show behind-the-scenes footage, and share short videos of company events.
If you're short of ideas for communicating your company culture on social media, here's a brilliant post you should check out.
7. Don’t Annoy People
Aggressive marketing tactics usually don’t work because many people find them intrusive. Don’t spam the email inboxes of your customers. Don’t constantly send out surveys. Don’t send a long string of follow up emails when they aren’t necessary.
Most customers will interpret these tactics as strong-armed spam. Keep generalized emails to a minimum.
On the other hand, aggressive tactics might sometimes work. Here's an interesting piece from Kameron Noel where he explains three effective aggressive sales techniques all sales people can use.
There's no point in trying too many strategies at once – you need to track your progress and know exactly where it's coming from.
You achieve customer retention in baby steps. When something isn’t working for your customer base, change the course as soon as you notice the problem.
Don't forget to regularly gather feedback from your customers. That's how you make sure that they have a good experience with your product and everything is right on track.
The article was published by Tess Pajaron from Open Colleges.