Investor, Sales and Marketing Pioneer, Author, Technology Champion, Philanthropist, Leadership Mentor
70% of CMOs overlook customer retention as a top priority, as per the recent Forrester survey. Sadly, this is 100% true in B2B marketing. B2B marketers lose almost half of their marketing budget and time focusing on new customer acquisition, inversely exceeding the cost per acquisition!
– Increasing? Decreasing or Uniform?
These questions might leave you wondering for a moment…
As per the recent survey made by Harvard Business School, even 5% customer retention rate can boost your business profits by 25-95%! This indicates that repeat customers can generate more than half of total business revenues!
80% revenue sources can be generated out of just 20% of new one-offs or regular customers sitting just right under your nose! All you need to do is to identify, capture, nurture and cultivate them!
So what is your starting point of scoring high retention rates of existing and new customers?
Well, whether you are a start-up, flourishing or an established enterprise, it is time to turn each passer by customer into your loyal advocates to impact your bottom line business. The lifetime value of each single customer counts in business relationship! And to achieve that, it is important to convert each of your customers from first order conversion to second order for business sustainability.
To see how one-time buyers convert into repeated customers, reflect upon these three effective ways of customer retention.
Prioritize customer retention to acquisition:
It is important for B2B marketers to decide which strategy to adopt for shifting their focus from customer acquisition to lucrative customer retention. An integrated solution to connect with customers can identify the unconsidered customer needs and envisage a buying perspective. Customer churn will be a lot way easier by adopting the strategies of increasing customer renewals and optimizing customer experiences. On the contrary, this will also shrink time-to-sale and cost-of-sale, significantly optimizing the buyers’ journey.
Build customer accounts with first purchase!
A positive first impression is always a lucrative business opportunity to create customer accounts. How many of B2B marketers care to build customer accounts without hindering conversions for first time buyers? Surely, only a handful of us! Making your pricey customer feel welcome after the first purchase is a smart way to win their confidence for a second purchase. Once it is done, leave an open invitation to the customer by encouraging customer accounts to provide an easy access of re-purchasing.
Build loyalty programs
Loyalty programs are excellent ways to add more personalized experiences to the services offered to customers. Customers love free gifts, stuffs and reward points that can increase their likelihood with every single purchase. This also helps generate positive customer responses and spread your brand value as a popular word-of-mouth. In turn, chances to win referrals gets a lot easier via loyalty programs.