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Keep more Customers with Web Based CRM Software

To compete in today’s markets, most all businesses have faced the challenge of moving from a product-oriented to a customer-oriented model. CRM software can be a very effective tool in making that change.

If implemented correctly, CRM maximizes the lifetime value of the customers you have today and those you will bring on board tomorrow. To succeed, businesses must understand that they will need to design, implement and manage a solution. They must align their people, processes and technology to the new customer-centric model.

An important ingredient for maximizing the lifetime value of each client is in the processes you execute at every customer touch point. CRM software can then consolidate and organize all this information that your company gathers on customers and prospects. Properly organizing it will give you the insights you need to effectively handle these relationships.

CRM software can help you improve your customer service and reduce customer churn in different ways, depending on your company, customers, the product you sell, and the way you sell it.  But to effectively leverage CRM in your business you will need the flexibility to tailor the software to more closely align with your overall company strategy.

A company can differentiate itself with a very good product or service, but that rarely lasts forever. Even a great product will eventually run into enough competition to easily become more of a commodity. The best way to defend any position is to employ a good offense. The best offense is to consistently deliver excellent customer service along with a great product.

It’s been documented that many customers find more value in the level of support they receive than in the finer details of the actual product or service. A CRM platform that is well-matched to your particular business needs is a fundamental part of a successful customer service strategy.

• Have you evaluated your customer retention rate?
  
  
• Do you have a plan to keep more of your customers?
  
  
• Have you implemented any technology solutions to help you in your customer retention efforts?

Below are some statistics that will motivate any business owner to take steps to develop and implement a solid customer service initiative.

• Only one out of 25 dissatisfied customers will express dissatisfaction, so don’t lull yourself into complacency by thinking your business is immune. You have to take action in this area to protect and grow your customer base.
  
  
• Happy customers tell four or five others of their positive experience. Dissatisfied customers tell nine to twelve how bad it was. Bad news travels farther and wider than good news. It’s human nature.
  
  
• The average company loses 10 percent of its customers each year. At that rate you will turn over half of your existing customer base in five years. Whatever you can do to reduce that percentage will greatly impact your bottom line.
  
  
• Acquiring new customers can cost five times more than satisfying and retaining current customers, so do every thing you can to embrace your current customers. Your long-term growth and profitability depend on it.
  
  
• The longer you retain customers, the more the profitability tends to increase.
  
  

 
Here is further confirmation of the importance of implementing a successful customer retention strategy. According to the U.S. Small Business Administration and the U.S. Chamber of Commerce, customers leave for the following reasons:

Why do Customers Leave?

68% leave because they are unhappy with the level of customer service.
14% are dissatisfied with the product or service.
9% choose to start doing business with a competitor.
3% move to another area of the country.
1% die.


If you keep in mind that there is more to business than a transaction, and if you work to build a relationship with your customers, you can strengthen your bond with them. As we have seen, the long-term success of your business depends in large part on the percentage of your current customers who choose to stay with you.

The next time they decide to spend money on the kind of services you offer, you want to be their first choice. Your customers may even be willing to pay more for your product or service if they have a personal connection with your company.

The ingredients for building strong relationships with your customers are not a big secret. Most of the principles for success in life are pretty straightforward. Th e costs of implementing a successful retention program are relatively low, as it mainly involves your time.

The challenge lies in the execution of your plan. Successful execution requires a combination of people and technology.

Stay tuned for more on this topic...coming soon. 

If you would like to speak with an experienced CRM Advisor today, give us a call and one of our Advisors will be happy to address your specific needs.

1.888.286.6578

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