Importance of Customer to a Business
The corporate world has undergone several changes in the last few decades. One of them is the change of attitude towards customers/clients. If you look into the previous years, you will be amazed at how companies took their customers for granted.
Business experts have cited a few reasons for the reckless attitude of businesses towards their customers:
· Fewer companies in the market
· Poor service of most companies
· Higher focus on new customer acquisition.
Most companies thought that if they lose a few customers in a week, they could easily acquire new customers (double the amount) in the next few days. As a result, the overall sales would be up to the required mark.
The evolved importance of customer
Today, the value of a customer has grown enormously. With a cut-throat competition prevailing in all sectors, companies have realized customer satisfaction as the key to success. This is precisely why large and small and medium-sized enterprises are investing in improved customer services. The idea is to retain the loyal customers for continued loyalty and repeat business.
Why is customer retention important?
For any large or medium-sized enterprise, losing out on its loyal customers implies losing a major share of profitability. For instance, a clothing brand that loses 35% of its loyal customers can suffer a 50% loss in total customer profitability. In addition to the profit factor, the cost of acquiring a prospect is more than retaining an old client. Considering both these aspects, companies (both big and small) are adopting effective customer retention strategies.
How to retain customers?
The ways to retain customers is virtually endless. However, the most important and dynamic way is through the use of CRM – Customer Relationship Management. The effective role of CRM in customer handling is one main reason that you can find many CRM software providers . The popularity of CRM as a customer management tool has made it the favorite of all enterprises.
How CRM helps?
CRM serves as a concentrated database of all your customers. So whether you want to extract information about your loyal clients or maintain contact with them through promotional e-mails – CRM helps you maintain the cycle of sales- customer service-marketing-repeat business.
Here are a few ways in which you can use CRM to retain loyal customers:
1. Regular contact with the customers
CRM helps set reminders: These reminders will help your employees follow up with your customers on a regular basis. Constant point of contact/follow up will create a positive impression. Customers will perceive your company as responsible and customer-driven.
2. Reach out to lost customers
CRM shows details of customers such as last transaction/last date of contact. Check these fields to get in touch with your lost customers. A promotional e-mail or a company event letter will help you get in touch again.
3. Prevent membership cancellation
Check the membership information of all the customers in the CRM database. Schedule promotional activities (such as promotional e-mail or a call) before the expiry date. Marketing/promotional communication around the expiry date will help increase the renewal rates.
4. Fast and prompt customer service
Opt for a web-based CRM application development . A cloud CRM will ensure that your customer professionals can access the customer data and provide personalized service in different geographic locations.
5. Assess the customer service
Check the CRM dashboard to check the product delivery status. Use the CRM report to track down the recurring service problems. Reward your employees who have gained the highest positive customer feedback.
Author’s Bio: Paul Anderson is a technical writer who has been writing articles on business management topics such as CRM software providers and CRM Application Development. In this blog, he talks about the growing importance of customer and mentions CRM as the perfect customer management tool.