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Enhancing Customer Retention through CRM Software

By CIOReview | Thursday, October 22, 2020

FREMONT, CA: Until a few years ago, customer relationship management (CRM) software was not as heavily used today. Companies are now actively leveraging technology to expand their business interests. When utilized to its full potential, CRM software can help organizations achieve their objectives. Obtaining new clients is essential for every business. However, it can cost five times as much as retaining existing customers. The problem cannot be solved by only investing in existing customers. This can have an impact in the long run as the company may not be able to accumulate enough clients to ensure growth. The numbers game makes the retention business even trickier. An overall 5 percent increase in retention can boost profits by over 30 percent, up to 90 percent. Studies have also shown that existing customers are more likely to try out new products and even end up spending 30 percent more than usual.

Client retention rates are based on the activities conducted by a company to boost the number of repeat customers and increase each existing customer's profitability. A robust client retention strategy will help in efficiently extracting more value from the existing client pool. When customers can understand all the company's hard work, they tend to stay as loyal clients.

Product and Service Improvements

A cloud-based CRM solution gathers all information from various sources, such as online chat, phone calls, and social media, and collects it all onto one platform. This provides a complete picture of customer behavior and allows the company to understand the current needs and future requirements. It also helps collect reviews on products and services, and understand if there is any requirement that needs to be changed or modified about the products or services offered.

Enhance Revenue through Customer Referrals

Signing up with an outsourced supplier can be beneficial for improving customer services. This is because sales executives are well trained in cross-selling and up-selling, making increasing revenue seem simple. With the aid of a CRM software, it becomes easier to identify when such opportunities will arise. Providing good customer service quickly satisfies customers and makes them repeat customers. When clients are happy, they tend to spread the word of the excellent customer service offered by the company, which brings in new customers through customer referrals.

See also: Top Cloud Solution Companies