Committed to Increase Your Customer Retention Rate
Converting your buyers into loyalist by using specialized live chat support strategies to maintain a higher customer retention rate.
What is Customer Retention?
Ever thought why some people stay with the same brand even after decades some change their service providers quite often? This phenomenon is called brand loyalty that companies cultivate in their consumers by paying attention on the customer retention rate. The customer retention rate or simply the CRR is the amount of customers who are not just satisfied with your service quality but are willing to do the business with you again in a future date.
Look at Apple, Porsche, or McDonalds and you’ll find a long list of loyalists in their customer base all because of a higher customer retention rate that these brands are gracefully maintaining. Yes, the CSAT and conversion ratio does play a part in your business growth but paying attention at your CRR is also equally important in order to understand where your business is headed. So, we pay due attention to your customer retention ratio while preparing monthly reports for live chat support each month.
Customer Retention Rate Importance for Businesses
Customer retention rate helps businesses take profitable decisions and determine the future course of action knowing their existing customers would stay with them. Although, the CRR offers unlimited advantages and opens more avenues of growth, but here are the key benefits that you can expect after you successfully increase customer retention rate of your company.
Cost-Friendly – Working on your CRR allows you to retain existing customers which is 7 times less expensive in comparison to acquiring new customers that ultimately impacts on the business capital.
More Profitability – If you examine the spending patterns, you’ll discover that your exisitng customers spend more on your services than the newly acquired. So, working on your customer retention rate makes your organization more profitable than the previous quarter.
More Opportunities – When you win a customer’s trust, you create brand ambassadors for your business so working on your CRR will pave the way for more business opportunities in the future.
Higher Conversion Ratio – If you compare the cost of acquiring new customer with the cost of retargeting the existing one, the latter is comparatively lesser.
Better Feedback – Having a better customer retention rate allows you to get customer feedback more easily in comparison to poor CRR situation.
Better client retention rate offers you various avenues of growth and you can connect with them more easily in comparison to those who’ve just discovered your services. Also, a higher CRR reduces your marketing efforts since your customers are satisfied with the service quality and preach about it wherever they get a chance so its an ideal situation for your business to prosper in the future.
How is it Calculated?
For calculating customer retention rate, you will to decide a particular timeline which can be a year, a quarter or maybe a month. The CRR is calculated to measure the raio for a specific time period that offers you the needed information to decide future course of action. You can plan how much marketing budget to allocate, how many people your sales team is required, and what amount of your revenue should be spent on your customer experience team.
While you calculate the customer retention rate for the live chat support services, here are the three essential components that make up the whole formula:
Total Remaining Customers
Newly Acquired Customers
Total Present Customers (Old customers)
You, first, need to subtract the newly acquire customers from the total remaining clients and then divide the remaining number with the total present customers.
The percentage you’ll get would be your CRR!
CRR = Total Remaining Customers – Newly Acquired Customers/Total Present Customers x 100
What is the Industry-wide Standard?
A higher customer retention concept varies from industry to industry and market to market!
For example, healthcare or legal services industry have a higher customer retention rate whereas the ecommerce market has a very volatile CRR scenarios. Mainly, it is the short-term customer journey nature of eCommerce industry and other industries have a longer customer journey having more options to retain their existing customers.
So, you’ll have to study your industry and more importantly the customer journey that impacts on an organization’s customer retention rate. In some industries, you’ll find a 100% customer retention rate but this is highly unlikely as you may not be able to keep every customer happy with your service quality. Then, every company has customer churn rate challenges that impacts on the CRR leaving it somewhere between 80-90% percent.
Simply put, a higher customer retention points at a higher brand loyalty that companies dream to achieve. Because a higher brand loyalty opens the door for growth and generating revenue for every organization. And if a company has lower CRR, it signifies the company needs to work on its customer service structure to understand their painpoints and improve the CRR.
How We Increase Customer Retention Rate?
Today’s customer is more active in sharing their thoughts about a product they’ve just tried or a service they don’t find up to their expectations. If you fail to keep them happy, they’ll simply switch to another service provider who offers them value against the money they’re spending on their needs. In live chat support service, there are a few method for increasing the customer retention rate and that are:
Omnichannel Customer Experience
Uninterrupted Customer Support
Loyalty Programs
Proper Followups
The blend of an uninterrupted customer support in presence of the omnichannel customer experience is one of the many ways we improve your customer retention rate. If you’re always there to answer your customer’s queries and solve the issues right away, you’ll earn their vote of trust and they’ll never hold back to speak in favor of you
Customers also feel heard and valued when they hear back from the service provider about a ticket they’ve earlier filed and the issue was resolved. So, to amplify this effect, we’ve created several followup stages and loyalty programs to create a feeling of trust in your customer’s buying journey. We offer them an ideal customer experience that gives your CRR a positive boost and impacts positively on your business revenue.
Final Words
Since customers prefer a first-class customer support experience, implementing an omnichannel customer experience strategies offers companies to keep their existing buyers loyal to the brand. Also, timely reviews of the uninterrupted customer support is another key to retain somewhat 90% of existing customers and achieving the customer retention rate objectives.
We employ our years of experience in customer support to devise an effective omnichannel customer experience for offering your buyers an option to stay connected with your business from multiple communication channels.
We train our agents with our after-sale support techniques for reconnecting with the customers, collect their feedback, and ensure they had a positive experience with the company. We also conduct several followup sessions for those who had a query and that was resolved recently. Using these minor practices, we’ve crafted an ideal omnichannel customer experience that contributes to the success of our client’s customer retention rate objectives. Around the world, there are customer support companies having CRR between 80-90% and we’re proud to state that you’ll find our name in this list.