Customer Retention Report 2022 with SubscriptionFlow
Today, all businesses are facing difficult times and fostering customer loyalty is no more easy, still, customer loyalty is the need of the hour. But why do we talk about the loyalty of customers when the point under discussion is customer retention management?
Customer loyalty and retention have cords connected that can never be cut.
So, if you want to increase customer retention, then you need to have better customer loyalty. Also, people have moved beyond customer loyalty programs. You also need to think of other than conventional ideas to give a boost to the customer retention rate (CRR).
First, consider the factors that cause the disloyalty of customers which is the ultimate cause of customer churn—an antithesis of customer retention.
Also Read: Lessons to Learn from Churned Customers for Improved Customer Retention
Factors That Breed Customer Disloyalty & Churn
A bad customer experience is considered the major cause of customer churn, however, customer experience is a broad term. And we will shed light on some important factors that can be covered under this umbrella term. Also, price hikes are not always the cause of disloyalty from customers.
- Customer loyalty programs that many SaaS companies curate with time and effort sometimes completely fail. For instance, a major cause of these failures is that customers consider these rewards unachievable.
- Social media trends are another important factor that you cannot neglect. If there is even a single negative review, do not let it go. Reply to it in an apt manner and words. Show that you take responsibility.
- Companies that make big promises but always underdeliver can never satisfy their customers.
- Puffery in marketing and fake promises are other big reasons that annoy customers and they do not want to be on board anymore.
- Sometimes, competitors offer something so lucrative that your customers come to the verge of disloyalty.
The reasons for customer disloyalty probably seem common, but just one single reason can fail all your customer retention strategies. So, never neglect the causes of customer disloyalty when you are working on customer retention strategies.
Customer Loyalty Trends 2022
Before we take you to the customer retention strategy, you need to know some retention-related trends.
- According to McKinsey, on average, in the US, one customer belongs to at least 17 loyalty programs—meaning the tough competition in the market.
- Companies earn about half of their revenue from 8% of their loyal customers.
- Every year, businesses spend about 75 billion USD on customer loyalty programs.
- According to experts, it can cost 5-25% more to onboard new customers than to retain existing customers.
The study of the market trends shows that retention is important, and you need to pay attention to it.
You have done your part.
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Customer Retention Strategies That Will Surely Work in 2022
The following are some customer retention strategies that can help SaaS businesses during the tough times of economic downturns.
1. Invest in Shared Values
You need to find the points of commonality between you and your customers. And one of these points can be a charity where not only you but your customers are also contributing. It will take your customer relations to the next level.
2. Improvise & Change to Excite Customers
In the SaaS business world, things change comparatively rapidly. You need to cope with changing trends and techniques. Keep introducing add-ons, new integration, or versions of your SaaS product. However, keep these changes user-friendly otherwise you can lose customers rather than adding them to your SaaS customer base.
3. Focus on Personalization
You need to make every customer feel that you are all ears to whatever they want to say, and your representatives should be all available for them. Send personalized emails, messages, and notifications to your customers. Address your customers by their first names and offer the best customer experience at all touchpoints.
4. Apologize When Needed
Ego or fake standards have nothing to do with the corporate sector. In the end, profit and loss matter. And to multiply profits, you need to make it a rule to apologize when you or your team make a mistake. According to experts, most customers keep purchasing from brands who apologize when they do a mistake. There is no harm in utterly a few words of apology if they can help you retain a customer.
5. Nurture Your Customer Base
You need to nurture and educate your customer base. For instance, HubSpot offers free courses regarding sales, marketing, and customer services that help them increase the knowledge bank of SaaS software users. Also, an educated customer base understands the technical challenges that you might face as part of the SaaS business market. Thereby, the relationship strengthens if the customer base is educated.
Also Read: What Is The Relationship Between Customer Retention And CLV: A North Star Metric For Your Business
Conclusion
Achieving customer acquisition and retention targets are challenges for SaaS businesses. However, if you have customer retention software, then things can be better and streamlined. SubscriptionFlow is all excited to introduce you to its application for customer retention and business growth.
If you are also worried because you have failed to achieve customer retention targets, then schedule a demo for SubscriptionFlow now!
