All companies want strong customer retention rates.
Studies show that a 5% increase in customer retention can improve profits by between 25% and 95%.
For tech companies looking to capture customers with subscriptions and memberships, retention is even more crucial. The majority of your income will likely come from loyal, committed clients.
Unfortunately, if you’re not constantly working to retain customers, you could be losing them much faster than you’d like.
Around 68% of customers end up abandoning your business simply because they don’t think those companies care about them.
So, how do you solve this problem?
Today, we’re going to look at some of the best ways to boost your retention rates as a tech brand.
Get to Know Your Customers
The better you know your customers, the easier it is to keep them around.
When was the last time you updated your user personas or looked at your analytics to determine which channels your audience uses most often?
Dive into all the information you have about your target audience for a better understanding of how you can serve them.
Reviews and testimonials from your clients are a great place to start the search for insights.
You can also consider talking to your sales and marketing teams or even conducting interviews with some of your most loyal clients.
When your customers do leave your service, you can also request that they leave feedback on why they’re canceling their subscription.
If you know what kind of hurdles are driving your customers away, like high prices or slow customer service, you can work on fixing the problem.
Work on Customer Relationships
Once you know your audience and what they like or dislike about your company, you can begin to work on building a long-lasting relationship.
Usually, this begins by segmenting your audience into different groups based on their background, purchasing potential, locations, or even the products you buy.
Segments make it easier to understand your clients and create personalized experiences.
Send out automated email campaigns which keep your brand top of mind for the customers you want to keep buying your service.
Pay attention to when a subscription is about to end and automatically remind your clients to renew their purchase with a free code or gift if they do.
One great option is to ask your customers to help you build on your product or service tool by allowing them to vote for or suggest the features they want to see next.
Reward Ongoing Loyalty
Customers want to know that they matter to you and your business on more than just a financial level.
When you have your user personas set up, it’ll be easier to see which of your customers are sticking with your business longer than others.
Think about how you can build on the degree of value that your clients currently get when they buy from you.
Can you set up customer loyalty programs and referral campaigns to show your customers how much you appreciate them?
What about sending regular discount codes to your most loyal customers, or anniversary codes for the day when your customer first signed up to your service?
Loyalty programs are often an excellent way to reduce client churn.
When customers see that they’re getting benefits by staying with you, they’re less likely to go searching for alternative offers.
To boost your chances of succeeding in the digital age, don’t forget to remind your audience of the benefits they’re getting with regular follow-up emails.
You might even have an app or a page on your website where customers can track their progress to their next reward.
Be Willing to Evolve
There are various reasons your customers might decide to abandon your technology or service for something new. One reason is that your product is simply too expensive for them. Another is that they’re not happy with the quality of service and support available. A particularly common reason for churn is that you’re not delivering the right selection of services and features anymore.
Many companies have had to change their investments in tech in recent years as a result of the pandemic.
People are spending more cash on cloud-based assets that require minimal on-site maintenance.
Companies are also looking for more flexible pricing packages, with bigger discounts for things like annual subscriptions.
Listen to your audience and find out what matters to them in the moment.
If you discover you’re no longer delivering what your customer needs, you need to be willing to change before your most loyal customers end up looking for ways to fill the gaps elsewhere.
Create a Comprehensive Service Strategy
Finally, all customers in the tech landscape need to know they can rely on the companies they buy from to deliver the kind of amazing service they need during difficult moments.
Start by designing a seamless, omnichannel environment where you can interact with your customers.
Are you available to answer customer questions on the channels that matter most to them, like email and live chat?
Have a team on-hand to ensure you can respond to questions as quickly as possible and consider investing in chatbots and self-service solutions.
Automated systems can allow customers to address common problems for themselves when your staff isn’t available.
Don’t forget the onboarding process, either.
A good onboarding strategy makes it easier for your customers to discover all the best features of your products for themselves.
This way, they’re less likely to be left wondering what they need to do next after they’ve set up their new tech.
An onboarding strategy might include product walkthroughs, checklists, videos, and even check-ups from agents.
Retain Your Valuable Customers
Loyal, long-term customers can be the most valuable asset your company has.
To keep your customers around, you need to be willing to invest in a constantly evolving strategy for guaranteeing their success and satisfaction.
From comprehensive customer service to a great onboarding strategy, make sure your plan is up-to-date.
Michelle Laurey works as a VA for small businesses. She loves talking business, and productivity, and share her experience with others. Outside her keyboard, she spends time with her Kindle library or binge-watching Billions. Her superpower? Vinyasa flow! Talk to her on Twitter @michelle_laurey.