These essential organizational tools are crucial to improving customer relationships and reducing your customer attrition rate this year.
In 2022, statistics gathered by Invesp found that U.S. businesses are more focused on improving customer acquisitions over retention strategies. The Chicago-based marketing consulting firm noted that “for every $100 spent on acquiring new customers, only $5 is spent on retaining existing ones.”
Finding new customers is essential for sustaining business growth, but it’s not enough. It is also necessary that small business owners and entrepreneurs place special emphasis on preventing customer loss. Many customers demonstrate high satisfaction rates due to fair prices, personalization, and high satisfaction. However, reducing customer churn and building up customer loyalty have been shown to help businesses thrive over time. It also reduces expenses associated with customer loss.
To prevent customer loss in 2023, it is important that entrepreneurs and small business owners look at how they can optimize their customer interactions. There is a myriad of technological tools that can help accomplish this goal. Here are 6 tools we believe every business needs to improve customer experiences and reduce customer losses this year and beyond.
1. Customer Experience Technologies
A report by Fortune Business Insights shows that the global customer experience management market has grown to $22.41 billion and is expected to reach 32 billion by 2029. Having a targeted message that speaks directly to potential customers and the right tools in place can improve customer experiences and brand loyalty. As a result, this is effective at reducing customer churn and growing retention rates.
The use of customer experience tools allows you to better understand your target customers. It also allows you to track their journeys and preferences and meet specific customer needs with automated processes. Amplitude is a great example of how you can improve your understanding of customer behavior and turn user data into meaningful insights that impact future product developments. Leading brands such as Dropbox, Walmart, HubSpot, and Notion trust the platform. It streamlines customer data analysis while increasing growth and engagement.
2. Subscription and Billing Software
A recent study by the Massachusetts Institute of Technology shows that customers are more likely to make payments on time when they receive payment reminders and have a digital payment platform that is quick and simple to use. To boost payment collection efficiency and keep your customers in good standing, consider using automated billing software to optimize payments.
Look for software that includes a list of features that will help you reduce attrition rates. Reports have shown that users who use Regpack billing solutions experience a 25% decrease in customer losses. It also shows a 30% increase in cash flow. Regpack provides a recurring billing solution that is equipped with customizable recurring schedules, easily managed payment plans, and auto-billing options to streamline invoicing.
3. Customer Relationship Management Tools
To keep your customers happy, focusing on customer relationships is essential for tracking data and understanding interactions. CRM tools have the capability to prevent customer loss and drive sales. It does this by better understanding customer needs, reducing operational costs, and supporting ongoing customer relations.
Zendesk has become a world-class name for over 10,000 companies across the globe. Known as a tool for providing exceptional customer service and managing customer relationships, it supports customer retention efforts. It does this by comparing the performance and strategies of competitors to provide customized CRM ideas for your business.
4. Digital Payment Solutions
A common barrier that keeps customers from returning is credit card fees at the checkout process. This usually falls around 3% of the total order amount. Credit card processing fees can be expensive for your business. But, it is best to refrain from charging your customers a fee or surcharge to recoup costs.
Consider a digital solution that offers account-to-account payments to avoid additional fees and provide a seamless customer checkout experience. Dwolla is a great option for eliminating credit card fees, serving as an easily implemented, low-code payment solution. This robust payment platform has helped businesses increase transaction volumes by 86% after integrating same-day ACH payments that reduced fund transfer costs and streamlined account transfers for users. The success of this innovative tool provides a white-labeled experience. It maintains brand loyalty and reduces administrative costs to work smarter and not harder.
5. Upsell Cross-Sell Software
Upselling and cross-selling strategies are great ways to keep customers coming back. Yet, many businesses leave the bulk of these strategies to customer support teams or hesitate altogether. A study by Bain & Co. found that returning customers spend over 65% more than first-time consumers. So, while chasing after new customers is more costly compared to retaining current customers, capturing opportunities with loyal customers is a valuable way to offset additional costs.
One of the best tools to support customer interactions during the post-purchasing phase is Klaviyo which uses SMS and email marketing to stay organized and save time on cross-selling. This e-commerce marketing automation platform has successfully earned its customers over $14 billion in untapped revenue. This is all while delivering greater retention rates.
6. Customer Feedback Tools
While reducing churn is an essential goal to have, don’t leave out efforts to win back customer loyalty. The Harvard Business Review has previously noted the need for companies to place greater emphasis on winning back lapsed customers using SMART strategies. In 2023, this means using the right tools to collect customer feedback, then using the feedback to gain back lost customer trust and loyalty.
To help you better identify why your business has experienced customer churn, you want to have an effective tool for gathering customer feedback. Survicate is one great option for delivering surveys in minutes across all distribution channels and informing you of the churn factors impacting your retention efforts.
Investing in digital solutions and self-service channels that are made to reduce customer losses is guaranteed to deliver long-term business growth, while still allowing leaders to focus on bringing in new customers. What tools will your business use to improve customer retention this year?