Businesses often focus on acquiring new customers but don’t do as much about keeping current ones. What they don’t realize is that they have up to a 70% chance of selling to current customers as opposed to only a 20% chance of selling to new customers.
Balancing Customer Acquisition vs. Retention
But does this mean businesses should focus on customer retention rather than acquisition? It depends on how mature a business is. Well-established companies should work more on retaining current customers, while startups should spend more effort on acquiring new ones. If your business is somewhere in between, striking a balance is the best approach. Here’s how to balance customer acquisition vs. retention :
1) Assess your current customer base
Not all current customers are worth keeping, so identify those you want to hold on to (like repeat/loyal customers) and those you can weed out (like one-time customers).
2) Turn to online marketing
Both new and current customers are on the internet, making them easy to reach with one go. Social media posts or email campaigns are the usual methods.
3) Keep your current customers engaged
Current customers can be a great source of word-of-mouth marketing. If you make them feel happy and valued, chances are that they’ll tell other people about your business which leads to new customers for you.
To learn more about balancing customer acquisition vs. retention, check out this infographic from First Data.
Sales are crucial to small business growth, right? Knowing the right buttons to press in terms of boosting sales for a business is the key to success. A small business that wants to grow should focus on becoming a “customer company”. You will be glad to know that data makes this possible. Transform your small business into a sales powerhouse.
Customer Relationship Management Applications
Customer relationship management (CRM) application tools are vital for small enterprises aiming to take their sales a notch higher. CRM apps arrange customer data scores into a simplified interface.
CRM Apps Improve Efficiency
With a CRM app, response to customers is quick and tasks remain organized. Additionally, more information regarding leads is gathered. What is more, salespeople send more relevant messages to customers.
Small businesses wishing to create accurate forecasts and improve ROI (Return on Investment) can pair CRM apps. Furthermore, you can use your already established accounting software.
What to expect:
- Up to 29%, 34% and 42% increase in sales, sales productivity, and forecast accuracy.
- CRM app collects customer data from social media, emails, and other sources and compiles in a simple interface.
- Customer requests are managed and arranged based on priority.
- Easier access to customer communications, account history, and critical information after merging CRM with existing accounting software.
Generally, adopting CRM minimizes search time, boosts sales and productivity. As a result, grows your small business into a sales powerhouse.
Thanks to the great folks at Salesforce for this insightful infographic.
You know this to be true, no matter if you sell tools or tech. Customer service can make or break your business and can do it more quickly than ever before. How many of us have stories we’ve heard of bad customer service experiences that have gone viral, ruining or cementing a company’s reputation and perhaps future?
Customer service rules, and if you don’t have a culture that encourages good customer service and don’t make time to constantly analyze and improve your customer service, you’ll be in trouble. That means empowering not only the department that deals with customers every day but also every other department to make those critical customer interactions better, every time.
That doesn’t mean, of course, that you and your team won’t screw up from time to time. You will screw up. The difference between you and someone else is whether you screw up and then fix it, and how quickly you fix it.
Customer Relationship Management (CRM)
One tool that didn’t use to exist to help manage customer interactions is, of course, customer relationship management (CRM) platforms. And now, too, there are CRM apps. These apps have really changed the nature of customer service, helping you to instantly deflate problems and answer questions. If you find the right one to use, you are also instituting another level in your customer service management department, helping inspire thankfulness and then in turn loyalty.
But choose the wrong app and you’re likely to be in a pickle, because it won’t work for you and it won’t work for your customers, either. And that can lead to even more problems. This app should fit into the overall structure of your customer service approach, working with a call center and digital solutions, among other items. So what does that look like? This graphic helps explain it.
Thanks, Salesforce for this informative infographic.