Organizations are always looking for more clients, but customer retention is equally important for driving sales.
B2B marketing, in particular, has a longer sales process and therefore higher initial acquisition costs, which means acquiring new prospects comes at a steeper price. Ensuring customer loyalty will secure revenue and can present new sales opportunities. Take for example, a study conducted by Bain & Company, which found that a 5% increase in the customer-retention rate can result in a 25%-to-95% increase in profits for businesses in the financial sector.
Investing in customer retention can be very profitable. Building a positive customer experience is an opportunity to keep your clients engaged and motivated to buy additional solutions that they might not have considered at first. Employing cross-selling and upselling tactics can also drive additional sales, and remember, a satisfied customer also contributes by giving positive referrals that will bring fresh prospects to your company.
Client retention is significantly more economical than client acquisition. According to this HBR article, client retention can lower sales costs anywhere from 5 to 25 times when compared with the costs of client acquisition. When looking for new customers, it implies searching for the right audience, educating them about your solution’s value, reaching out to all the decision-makers, and so on. For clients that are already in business with you, all of that is unnecessary.
Accenture’s recent research shows that 78% of B2B customers are more loyal to companies that inspire trust. A critical component of trust-building is creating a positive customer experience. Further, 90% of B2B executives identify customer experience as a defining factor in reaching business goals. Based on McKinsey & Company findings, B2B customer-experience index ratings significantly lag behind those of retail customers. B2C companies typically score 65-85%, while B2B companies average less than 50%. McKinsey & Company continue to report that organizations that have undertaken deep transformations of their customer-experience processes saw higher client-satisfaction scores, reductions of 10-20% in cost to serve, revenue growth of 10-15%, and an increase in employee satisfaction.
Here is the process that Direct Objective suggests for increasing client loyalty:
The first step is assessing how your clients feel about your organization. This analysis will allow you to learn about their level of client satisfaction, their perception of your organization, any client experience “hiccups”, and finally how you can improve their journey to ensure stronger customer loyalty.
Different target markets have different client requirements. Your content and marketing efforts should be based on what your existing customers really want. Developing relevant solutions for them is done by addressing their specific challenges and ensuring their particular needs are met.
In order to address client concerns and ensure a smoother client journey, it is necessary to have a loyalty strategy. By using various marketing initiatives, you can transform the perception of existing clients and create a positive client experience for satisfaction, retention, and profitability.
Once the client loyalty strategy is in place, you need to act on it. Generate the relevant content material and ignite an integrated workflow of activities to target any milestone barriers for clients. Over time, the cumulative efforts will prove to existing clients the continued value of doing business with you.
On a regular basis, Direct Objective will quantify and evaluate the impact of various activities on the client experience, in addition to gauging trust levels. Each activity will be assessed by the impact on the client experience journey. Activities will be reinforced or adjusted depending on the outcome received.
Direct Objective Consulting has many tricks up its sleeve to ensure optimal client retention for your business. We use a wide array of strategies to create a positive client experience on behalf of your organization:
Direct Objective’s expertise allows clients to conduct a positive transformation in the customer experience for their client base.
"I have had the privilege of working with Gil during my time in MTS. I view Gil as a highly talented and goal oriented individual that manages his responsibilities in the best possible manner. Gil was higly appreciated both by customers, for his professional approach, and internally in the company for his team work approach."Aviv Amiri, Former Sales Director, MTS