New research shows that it could cost a business 6-7 times more to acquire a new customer than to retain an existing one. Customer loyalty and retention are the biggest drivers of referrals and revenue in the commercial world. Customer retention takes time to bear fruit and it is certainly worth investing time and resources into it. Here are four ways a CRM can help you maximize your customer retention rates and inevitably increase your ROI as well.
1. Helps You Understand Customer Needs
A CRM is not just a software that you input your customers’ contact information. It can be useful for a lot of other purposeful things. For instance, a CRM Software is equipped to give you information about customer’s behaviours, preferences, buying patterns, and their entire history with your organization. By having this data at your fingertips, you can better understand your customers’ needs and preferences and inevitably helps you retain them during contractual negotiations as well.
2. Improve Overall Experience
Customers aren’t too fond of seeking new relationships with new service providers, especially when it comes to implementing new software, but they will if their customer experience is not what they are looking for. CRM analytics and capabilities make it possible for organizations to improve the overall experience for their customers through well-targeted communications, improved service execution, exceptional and inimitable service offerings and more importantly excellent customer service and after-sales support.
3. Lower Operational Costs
CRM software is perfect for reducing operational costs and streamlining operations. The capabilities enabled by CRM give organizations a holistic approach to managing their customers, allowing them to identify how to serve their customers in the most efficient manner without breaking the bank. That, in turn, makes it possible for companies to further invest in the customers they already have. It’s a cycle that helps to build customer retention rates unlike those that were in place in the past.
4. Spot and Fix Problems Proactively
If you have a CRM like InfoFlo, you can easily spot changes or sudden breaks in purchasing patterns and sometimes detect drifting customers before they cancel your services. Then, you can proactively investigate and solve issues rather than letting them damage valuable business relationships and jeopardize future retention rates.
About Carmel Vison
Carmel Vision, a Toronto based CRM software development company, is focused on delivering a powerful management infrastructure that is designed to collect, search, and archive all content, contact and communication activities that take place in a typical office. We understand and listen to all of our customers’ needs and strive to give excellent quality at affordable prices.
Our flagship product, InfoFlo – is a central management system specifically designed to combat one of the biggest technical challenges facing any professional organization, how to efficiently organize, archive, filter and search the vital information that bombards our desktops on a daily basis. Our infrastructure allows all office activities to coexist together under one umbrella, making all critical information readily available at your fingertips.
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