For any business that provides a product or service to customers, the act of finding, targeting and obtaining new customers is always going to be among its top priorities. But, what many businesses tend to forget is that once a customer makes the first purchase, there is much more to be done in the customer relationship. Smart businesses know that the first transaction is really just the beginning, and that the real business value lies in retaining that customer.
It’s far less expensive – not to mention much easier – to keep existing customers than it is to find and convert new customers. Because of this, customer retention is more important than ever to organizations, especially those that consider customer lifetime value. In order to grow customer retention rates, you need to focus on engaging customers, delighting them with their experience, exceeding their expectations and building their loyalty. According to consulting firm Walker Info, “By 2020, customer experience will overtake product and price as the key brand differentiator.”
Of course, keeping customers happy so they keep coming back is a critical component of your business’ success. Organizations implement customer retention programs to retain as many customers as possible and to make the entire customer journey a valuable one.
Retaining customers requires giving them an excellent customer experience throughout their entire lifecycle by personalizing every interaction. The only way to deliver truly personalized and relevant experiences is by completely understanding your customers.
That’s where your customer data comes into play. Your customers generate data at every touchpoint, but harnessing all of that data is a nearly impossible task without utilizing data-driven technology. You can eliminate the data silos, connect the dots of a customer’s interactions across multiple channels, and build a comprehensive, holistic customer profile to gain a real-time, trending, and complete view. When you truly understand your customers, you can act on potential churn well before your customer considers it.
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