For all businesses, new sources of revenue are important. But it's the loyal, repeat customer that can significantly have an impact on your bottom line. A number of studies point to the business-value of retaining your customers:
Although most companies understand the value of repeat business, and have heard it costs 5 times more to acquire a new customer than it does to generate business from an existing customer, there continues to be a large focus in many companies on attracting new customers.
A recent Forbes Insights Customers for Life report highlights this focus on attracting new customers over customer retention. Their survey of 312 businesses in North America - across a wide rage of industries - identified only 38% are primarily focused on repeat customers for revenue growth, while nearly half (49%) are still focused on new customers.
It’s not that businesses don’t care about customer retention. The Forbes report also identifies in relation to other organizational goals, 94% of survey respondents rate retaining customers as a somewhat high, extremely high or top priority.
Tech marketers can begin the retention process by implementing a customer nurture program - automated marketing campaigns for existing customers. Leverage your marketing automation system to continually engage with your current customers and create nurture campaigns that:
A fool-proof way for technology vendors to deepen customer relationships is by helping channel partners set up an automated IT contract renewal reminder program. Personalized customer nurturing emails are sent a few months or a couple weeks prior to a customer’s contract expiration date. By setting up automated, personalized emails, not only will your company gain value through increased revenues and enhanced customer relationships, your customers and your sales reps will benefit too.
To make your automated renewal reminders effective and help you enhance your customer’s view of your company, follow these tips:
Follow automated email marketing best practices. Ensure the sender name is clear and recognizable for recipients and use a subject title that lets the customer know exactly what the email is about! Your content should be clearly laid out and include a link to a renewal page or a clear call-to-action.
And personalize the email to include not only the recipient’s name but also a reference to their use of your product or service if possible. For example, information about the last time they logged into your system or used your service.
Contact your customer well before the renewal date and more than once, leaving plenty of time to discuss refresh or renewal options. Send the initial email well in advance of the renewal date. This can vary from one to two months or even more depending on the nature of your product or service and the length of the contract.
Time your follow up emails accordingly and be sure to schedule a “Thank you for renewing” email once the renewal has been processed.
For large renewal contracts, a phone call from your company to discuss renewal options would be appropriate. Other approaches to consider could be a text message for customers who have opted in and relevant information about renewals on your web sites. It may even make sense for your company to discuss renewals in a general way on your social media properties such as Twitter and LinkedIn.
At all stages of the automated renewal and retention process, make it a great experience for your customers by providing all the information they require, anticipating questions in advance and proactively contacting customers. Remember, companies that prioritize the customer experience generate 60% higher profits than their competitors! Ensure all customer touch points offer information that assists the customer in making the renewal decision.
A part of your automated renewal and other nurture campaigns to existing customers, engage with them on a personal level, and be sure to cater content to their existing purchase. For example, provide FAQ blogs to contacts that purchased recently, or upsell by featuring complimentary products to their purchase. Most of all, be human, anticipate customer needs and open up new opportunities for engagement and communication.