Make Customer Retention and Loyalty a Reality
Organizations are always looking for more clients, but customer retention and client loyalty are equally important for driving sales, if not more. B2B marketing, in particular, has a longer sales process and, therefore, higher acquisition costs, which means acquiring new prospects comes at a steeper price.
According to HBR, client retention can lower sales costs 5 to 25 times compared to new client acquisition. Looking for new customers means searching for the right audience, educating them about your solution’s value, reaching out to all the decision-makers, and so on, which is unnecessary for clients who are already in business with you.
Customer Retention and Client Loyalty are Critical for Business Stability
Ensuring customer loyalty will secure revenue and can present new sales opportunities. A study conducted by Bain & Company found that a 5% increase in customer-retention rate can result in a 25 to 95% increase in profits for businesses in the financial sector, for example.
Customer Retention and Client Experience
The impact of client experience on retention (research)
Accenture’s research shows that 78% of B2B customers are more loyal to companies that inspire trust, a critical component of 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%.
The challenges of B2B customer experience
- There are multiple decision-makers in the B2B sales cycle, and customer experience should address them all.
- Navigating the ebbs and flows of the buying team-supplier relationship, just like opinions or biases about the supplier’s reputation.
- In B2B transactions, the procurement team is not necessarily the end-user of the service or product.
- Industry jargon may create barriers not only for prospective customers but also for ongoing clients. The customer journey can become fragmented into multiple steps.
What's Your MarketingReadyTM Ranking?
Our Customer Retention Methodology
The guiding process that Direct Objective suggests for increasing customer loyalty should include the following steps:
1. Customer satisfaction survey
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 retention.
Receiving high Net Promoter Score (NPS) results does not guarantee high retention. Based on our experience, if the NPS is not conducted properly, you will receive biased findings. A quick analysis will enable us to suggest better practices for holding a reliable NPS survey.
2. Client expectation analysis
Different target markets have different client requirements. Your content and marketing efforts should be based on what your existing customers really want.
Tackling their distinct challenges and guaranteeing that their specific needs are fulfilled is how you develop relevant solutions.
Need a customer expectation analysis?
3. Loyalty strategy
In order to address client concerns and ensure a smoother journey, it is necessary to have a customer retention strategy.
By using various communication initiatives, you can transform the perception of existing clients and create a positive experience for better satisfaction, retention, and profitability.
You’ve conducted satisfaction surveys and client expectation analysis, but aren’t sure about your retention strategy?
4. Client retention execution plan
Once the customer loyalty strategy is in place, you need to act on it. Generate the relevant content material and ignite an integrated workflow of activities to address common client milestone barriers. Over time, the cumulative improvements will completely change existing clients’ perceptions and highlight the continued value of doing business with you.
It is not enough to set a retention strategy. The execution must also be impeccable.
Not seeing results from your plan?
5. Customer loyalty: progress assessment
Direct Objective will quantify and regularly evaluate the impact of various activities on the client experience, in addition to measuring trust levels. Each activity will be assessed by the impact on the client experience journey, and reinforced or adjusted depending on the outcome received.
Customized Customer Loyalty Approach
We use a wide array of strategies to create a positive client experience on behalf of your organization:
- Ensure delivery of proposed benefits
- Make sure your customer service is resolving issues in a timely manner
- Segment your clients and offer them various development paths
- Constantly assess the level of customer retention and satisfaction
- Continue to educate your clients about your contribution and the ongoing value associated with it
- Showcase your customer successes
- Reward clients for loyalty and illustrate disincentives to leave
- Recognize that there is a 20-40% chance of getting a former customer back, if you try at all. We do not hesitate to win back a client
Direct Objective’s expertise enables our clients to bring about a positive transformation in their customer experience.
With a customized loyalty approach, we increase customer retention, personalize new experiences, and secure customer loyalty for your organization.
Improve client retention and loyalty now.