CRM for Customer Retention: How to Delight Your Customers into Staying?

CRM for Customer Retention How to delight your customers into staying

In the current business environment, you cannot take customer retention for granted, even slightly. Your customers are your company’s most important assets. With competition waiting to entice your customers away with attractive offers, you simply cannot afford anything less than an optimal move that is customer retention.

According to an industry report, 71% of customers are lost due to poor customer service. Globally speaking, that is a loss of $243 per customer on average.

Research done by Invespcro says that it is 5 times more expensive to acquire new customers than to retain existing ones. 

There is a well-implemented CRM system behind a good customer retention strategy. Under a CRM-organized customer retention program, you can control and manage multiple facets of your business. With the right CRM-based tools, you can organize and manage each customer interaction and conversation to aid your business objectives.

What is CRM and How it can Help in Customer Retention?

The primary role of a CRM solution is to improve customer retention. Additionally, it also helps in increasing customer acquisition without jeopardizing existing customer relations and ensuring the smooth transition of a new customer to a loyal, long-term client.

With CRM, you can create a successful and repeatable strategy for customer retention. Integrating with multiple data sources, you can store and retrieve each piece of customer action. This data presents your essential inputs about customer preferences and interests.

This data helps you drive your customer evolution in the right direction. You can also filter and detect previous points of disagreement with your customers. This allows you to take proper evasive steps to avoid points of friction and disagreement.

CRM for Customer Retention How to delight your customers into staying


Importance of Customer Retention

At its core, customer retention simply means keeping your customers. But there’s a lot that goes into that simple goal. The importance of customer retention is well-expressed by these figures. 

  1. A slight increase of 5% in customer retention can boost your business profit by 25% to 95%.
  2. Almost 65% of a company’s profit comes from repeat customers. 
  3. 82% of businesses agree that retention is cheaper than acquisition.
  4. Repeat customer statistics reveal that returning loyal customers spend an average of 33% more per order as compared to others.


These figures show that working to retain customers is a good investment for any business. 

Customer retention is much more cost-effective than acquisition. Retention can turn into an increase in overall customer lifetime value since your customers are likely to trust your business more and make more profitable purchases with time.

What Affects Customer Churn Rate?

It is essential to first identify the reason behind your customers leaving before you step into the ways to maximize customer retention. 

There are multiple reasons for customers to discontinue their association with your business. Some of the most common reasons include;

  1. Inefficient customer service leads to the loss of customers. If you are not responding to customer queries on time, it leads to customer frustration which ultimately results in customer churn.
  2. Lacking personalized approach while offering customer support is another such reason which leads to dissatisfaction. This results in customers switching to your competitor that offers a personalized service.

CRM for Customer Retention How to delight your customers into staying


Difference between Customer Acquisition and Customer Retention

As the name suggests, customer acquisition refers to obtaining new customers. It involves all the effort that goes into turning prospects into customers. It demands a considerable amount of time and effort to look for people who are interested in your product or service and then convince them to make a purchase. 

On the other hand, customer retention is an easy process that involves only those efforts that go into retaining existing customers. It helps you in cutting down acquisition costs while increasing profits. In addition to that, it also helps to attract new customers through recommendations.

CRM for Customer Retention How to delight your customers into staying


Simple Strategies to Boost Customer Retention 

The battle for customer retention is fought every day, with customers being the centerpiece for every move and action. Ensure that you take the right steps for ensuring customer retention. 

With that in mind, here are some effective customer retention strategies you can focus on:

1. Customer Journey Map

Collecting customer data is important for your business in regard to customer interactions. It helps in tracking the needs and demands of your target customers. But this raw data is not enough to communicate the experiences of customers. 

Here, mapping your customers’ journey helps in connecting focal points of the customer’s experience: from initial contact(awareness), through the process of engagement (urging the customer to purchase), and into a long-term relationship (post-purchase involvement).

It allows you to assess the strong as well as weak points of your customer support operations and also provides guidelines to engage more efficiently with your customers.

2. Personalized Experience

Using a Service CRM solution will be useful for you to keep track of customers’ behavior, preferences, and needs. CRM provides you with relevant contact data which helps you to personalize your engagement with customers easily.

It enables you to track previous purchases, purchase behavior, and other associated information to offer personalized service to your customers.

You can also identify your customers’ preferred communication channels to interact with them easily.

3. Customer Engagement

The right customer retention CRM provides you with the necessary tools and features to keep your customers engaged. Engaged customers prove to be an asset to the business.

Businesses with good customer engagement are capable of generating more revenues than the ones which do not use any CRM plan. 

With the help of a CRM, you can identify which communication channel is giving more results and you can use that specific channel to connect with your customers.

With access to all the communication history in a single place, you can avoid customer frustration and increase your CSAT rate.

4. Determine Customer Lifetime Value

Customer Lifetime Value (CLTV) is the key performance indicator of customer retention. It depicts a picture of your customers’ worth over a period of time. 

CLTV helps you to determine the value each customer brings to your business, otherwise known as customer equity. Returning customers add more value based on the resources you’ve expended to acquire them. They are usually your VIP customers and they are most likely to recommend your products and services to others.

CLTV can help you determine what you should spend to engage your customers and can also help to predict business revenue.

5. Loyalty Programs

In addition to giving discounts to your customers, think of offering them any small gesture that will make them feel good about using your product. Any positive acknowledgment or even a simple thank you note can keep your customers coming back.

Treat your customers well with a loyalty program and they will respond to your business accordingly. 

Loyalty programs prove to be effective at retaining customers by preventing them from turning to your competitors. These programs can also maximize the customer lifetime value by offering incentives to spend more and buy more often.

6. Collect Feedback

Customer behavior is evolving with time and scoring repeat purchases means continuously coming up with products or services that your customers really want.

Customer feedback helps you in knowing the demands or experiences of your customers which can be later used to improve your services. Customer feedback gives you insights about your product and what most of your customers commonly dislike. 

It also helps in calculating your NPS (Net Promoter Score) which is one of the easiest ways to understand your relationship with customers. 

Customer Retention – Key to Profitability

The battle for customer retention is fought every day, with customers being the centerpiece for every move and action. Ensure that you take the right steps for ensuring customer retention.

If retention is the watchword, Kapture’s customer support software becomes the way to achieve it. This involves constantly predicting, following through, and supplementing the individual needs of your customers. It helps you build a core of satisfied customers.

With CRM-enabled customer service, you can easily automate the accumulation and storage of customer knowledge in cloud repositories, initiating fast and easy issue resolution. This provides a centralized system for customer issue resolution.

We help you build strong and long-term customer relationships with the potential to propel your business growth.

Explore more about our help desk ticketing system at Kapture by connecting with our product squad.

About the Author

Shivika is a Content Writer at Kapture CRM, who enjoys using her creative skills to contribute to the exciting technological advances. She is passionate about cultural artifacts and culinary art.

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