Customer retention is at the heart of every B2B enterprises. According to Fred Reichheld, author of the Loyalty Effect, a 5% increase in customer retention can lead to a 25% to 100% rise in a company’s profit. Without solid retention, call centers for customer support might end up investing a lot of money on acquisitions.
Acquiring a new client is more expensive than retaining an old one. In fact, it costs five times as much to acquire a new customer. If your company is currently experiencing this kind of situation, you might consider outsourcing a call center team that knows how to value long-term customer relationships and understands the consequences of not properly servicing them.
Why Should You Care About Existing Customers?
Here are five great points why taking care of your existing customers is the easiest and most predictable source of new revenue for B2B customer support service companies:
- Less Marketing Expenses
As stated above, acquiring new customers costs a lot of money than retaining old clients. By keeping your customers who are already familiar with your products and/or services, you are guaranteed to save more money and cut down your marketing expenses such as creating brand awareness and advertising your products/services range. Retained customers also are likely to be aware of both offerings without the need for additional marketing. Familiarization with your products and services also means your business needs to spend less time on customer support. - Free Word-of-Mouth Advertising
Word-of-mouth is considered as the most cost-effective advertising strategy that you can have and only comes from your loyal, existing customers. Old clients are more likely to tell their families, friends, and colleagues about your business and how do they feel about your products and services. Repeat customers are happy to tell people about the excellent customer service they received or a product that they really liked. - Repeat Profit
If you take good care of your repeat customers, they will purchase more regularly and in greater quantities. According to DCR strategies, 50% of retained customers are more likely to purchase new products and spend 33% more than new customers. If you pay attention to what brands or types of products and service retained customers want, they might end up making additional purchases at your business. - Give Valuable Feedback
It’s very important for B2B enterprises to listen to the customers’ feedback as it helps them improve their customer support services and achieve customer satisfaction. In a recent study conducted by Apptentive, 97% of consumers said they are somewhat likely to become more loyal to a company that implements their feedback, while 55% of consumers said they are not likely to continue being a loyal client of a company that overlooks their feedback. By taking good care of your repeat customers, you are assured to receive the best, valuable feedbacks to boost your company’s reputation and drive sales. - Boost Customer Support Service Performance
Repeat customers are expected to provide clear, comprehensive responses when answering different survey questions measuring your customer support service performance. Some of their answers are great indicators that you are establishing consistent customer satisfaction, while others are important reminders on how to enhance your customer service.
Conclusion: While others still think that acquisition is the ultimate solution to cover up the problem of customer retention, many B2B customer support service companies are now embracing the idea that taking care of their existing customers is vital to generate leads, drive sales, and to improve their customer services.
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