Although the aspect of new customer generation remains on top of the mind of every business owner as a prime marketing and sales goal, you need to be heedful about the power of repeat customers too. Since they’re already aware of your products/services, the marketing agenda becomes increasingly straightforward. Furthermore, when they decide to return, your revenue earnings increase drastically. By good fortune, a franchise CRM software can make an indelible mark to hold your customers back and expand your business.
The Significance of Customer Retention
The importance of retaining your existing customers can be comprehended with the help of a plethora of studies and statistics. Research indicates that once you acquire thorough knowledge about your existing business, you would just need to pay one-fifth of the overall price it would cost to draw in a new customer while retaining a current one.
Furthermore, it’s been revealed that 80 percent of the revenue of an average-sized company comes from only 20 percent of its existing customers. Consequently, a rise in your customer retention rate by 5 percent will uplift your profits by a maximum of up to 125 percent.
It’s noteworthy that these lone statistics don’t entirely portray the merit of customer retention. Customers who purchase more than once from you have the ever-increasing potential to convert into brand promoters. They eventually spread the word-of-mouth praise for your products/services sans any in-your-face impetus. Besides, this spoken communication is valuable in thriving your business.
How to Enhance Customer Retention with Franchise CRM
To put it plainly, customer retention is of the utmost consequence. In fact, much more than what you think. Nonetheless, how do you gauge the precise modus operandi to ensure your first-time customers coming back to you, asking for more? That’s where a CRM blazes a trail. Its innate features designate relationship building as being most important. They facilitate businesses easy access with both prospects and live customers. Thus, CRM is a priceless driver to control customer retention.
Leverage with Contact Management for Retention
The job begins by making the most of contact management. It’s imperative that your business has a comprehensive database containing necessary contact details of your current customers.
A potent franchise CRM software enables you to not just preserve these records but append extra information like a social media profile or new email address as and when they’re available. It likewise monitors your customers’ complete purchase history alongside supplementary activities and communications. As a result, you can bring an elaborate consumer database into being that will pose as the cornerstone for any well-heeled retention effort.
As a franchise operator, this information comes to your aid in putting a focus on products/services that appeal to your existing customers most. Obviously, this has the only plausible end goal to increase sales.
Without a doubt, an in-depth database matters nearly nothing if you don’t utilize it much. That’s the juncture where email makes an entry into the scene. By using your franchise CRM software, you take to sending targeted emails to niche segments of your audience base that are relevant to their individual needs.
Engage in Email Marketing and Nurturing
The customers, who have purchased family gifts from you before, will expect markedly different messages than those who indulged in buying for themselves. If you use the profile data collected from your endeavor to build contact management, you can distribute targeted emails that attend to your individual customer’s pain points in a way that’s exact and clear.
A typical franchise CRM software isn’t limited to once-happening promotional emails. Truth be told, you can create insightful nurturing campaigns that keep your customers abreast of current offers, company events and many more. The greater the degree of personal involvement your customers feel with your company, the better is the propensity for them to arrive back as returning numbers.
Engineer product/service menu
The achievements of any franchise business are contingent on its customer offerings. Products/services on offer need to comply with customer preferences and expectations. By taking recourse to a CRM, you as a franchise owner can effectuate informative report generation on varied aspects of your business. These include reports depicting your popular and profitable items, financially rewarding but less favorable items, popular yet loss-making items, and finally unpopular and useless items.
Of course, the items that have garnered immense success should top-rank your list of offerings. But, unfavorable products/services may need a spruce-up or alteration to become moneyed choices. That’s when, it may be advantageous, to connect with the franchise owner and share your observations. The sort of information, you share can motivate the creation of a novel and innovative product/service.
At the end of the day, customer retention matters. CRM should form an indispensable piece of your retention efforts. Thankfully, on account of its built-in contact management, email marketing, fostering attributes, and product/service menu, you can reach out to your customers in a focused and personalized manner. This encourages your customers to maintain active engagement with you. You’ll gradually start making loyalists who advocate your brand within their own personal ambits.