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Culture / 12/09/2018
Customer Retention: What Keeps Clients Coming Back?
Customer retention reveals how satisfied and how good clients are at using our services. Building a Customer Retention team was a huge step forward to the growing company like Heficed to get closer to our clients.
Helping them to understand better and manage Heficed services, we at the same time analyze potential and existing problems and reasons why clients leave, to avoid that in the future.
We reveal some beneficial information about our customers through various measurements. How we acquire new clients as well as how satisfied they are. For example, the customer retention rate shows the percentage of your clients who continue using your services, while customer churn reveals the opposite, the clients who left you during a given period.
Apart from the recurring income and sustainable business, well-managed relationships with customer grants companies with reduced costs related to new leads generation.
Measuring Customer Retention
Why do the clients leave? There can be various reasons. Whether it’s a lack of trust in the company or changing needs, we want to analyze as many cases as possible. With customer churn being the main KPI, we carefully follow cancellations and terminated services.
Customer retention can also be calculated mathematically using the following formula:
Customer Retention Rate = ((# Customers at the End of Period – # Customers Acquired During Period)) / # Customers at the Start of Period)) X 100
Once you are aware of your customer retention rate, you might consider auditing the churned clients to find out the reasons for leaving, their similarities, or types of clients that quit using your services.
This information can provide several insights and be a massive help in the later development of the sales strategy. Continually questioning the clients’ behavior, typical and ideal buyer persona will help to improve, creating a more successful environment for your existing and future clients.
How to Improve Customer Retention?
Customer retention improvement is an ongoing process, consisting not only of, obviously, making our products and services better but also by interacting with the customers themselves.
Heficed, in addition, provides its customers with better support and communication via email, Slack, Skype, and other channels.
Bonding with customers lays down the foundation of constant improvement and allows us to get closer to them. How to create that bond and develop customer relationships? We do that with the help of recurring Sales and Support training, regular discussions on potential improvements, feedback collection, and gathering ideas.
We’ve collected several examples and good practices for improving customer retention. We rely on technology and automation – automated emails, a more user-friendly Client Area, finally, custom solutions, and managed services.
Ramutė Varnelytė, the Head of Customer Retention at Heficed, is known as the company’s Voice of the Customer. She points out that running a regular client profiling is crucial for the company. “It not only helps to build the connection but provides some valuable insights and constructive criticism as well,” says Ramutė.
We don’t stop when we get positive feedback from our clients. Regularly analyzing all the feedback and customer satisfaction rate, we can create a more prosperous and custom environment for our clients.
Measuring customer retention helps us to get closer to our clients and vice versa: we appreciate their feedback and ideas for further projects and service improvements.
Customer retention measured by different metrics, like customer retention rate or customer churn. A more personal approach, along with technology and automation is already a solid reason for your clients to keep coming back.