5 Best B2B Customer Retention Strategies and Benefits
Imagine this. You make immense efforts to capture your customers' attention, make them go through a journey with you, and convert them into buying customers.
Ultimately, that customer never returns after buying a product from you.
So, you go through the same cycle repeatedly with new customers, which is time-consuming and eats up your resources.
Wouldn't it be better to make that customer stay and repeatedly purchase things from you?
That's where you need to learn about customer retention.
- Learn about B2B customer retention and its benefits
- Learn the top five B2B customer retention strategies
- Understand customer retention formula and calculate retention rate
- Understand how Worknet AI helps with customer retention.
What is B2B customer retention?
Customer retention is the process of building long-term relationships with existing customers and encouraging them to buy more from you. The goal here is to keep those customers coming for more.
5 Best B2B customer retention strategies
1. Provide Personalized Customer experience
Customers appreciate when they feel valued. This is especially true during customer support interactions. Customers today expect you to know their purchase history and relevant details before you talk to them.
And to achieve this hyper-personalized customer experience, your customer support team needs access to all the data needed for personalized service. AI tools like CoPilot help your customer teams quickly gather customer data to provide personalized customer service.
2. Simplify customer support workflows
We relate the majority of customer experiences to customer support. This means that if your customer support workflows are not good, it is hard to retain a customer. A streamlined workflow often ensures issues are resolved promptly, thus reducing customer frustration and efforts.
A good example of bad workflow is when the customer keeps repeating their issues to every agent. Agents should already have information regarding the customer's problem so that customers don't waste time repeating things. This can be achieved through AI for customer support.
As an example, consider online retailer customer support. In a traditional setup, which often involves call routing and manual data gathering, both customer agents and customers will get frustrated. This is because gathering data in time is often slow when done manually.
AI tools here can streamline this entire workflow.
Using a user-friendly chat interface, automated categorization, and a unified dashboard for support agents.
This simplification leads to quicker responses, efficient issue resolution, and reduced customer effort, ultimately fostering a positive customer experience and increasing retention rates.
3. Build trust with your customers
When did you last buy something from an unknown brand you don't trust? Maybe a long time ago, or never! Right.
Trust is a fundamental factor that pushes your audience to leap of faith and buy something from you. It is the foundation of a solid customer-business bond, influencing customer loyalty, satisfaction, and willingness to continue engaging with a brand.
Here's how building trust contributes to customer retention
Consider an e-commerce store that delivers each product on time and promptly resolves any issues. Customers love this reliability and positive experience, which fosters trust.
This trust leads to repeat purchases and a higher tolerance for occasional mistakes. In the long run, e-commerce benefits from increased customer loyalty and reduced churn, contributing to a higher customer retention rate.
4. Use omnichannel marketing
An average person today uses more than one device or platform. This increases the importance of omnichannel marketing.
Omnichannel marketing includes using several channels to reach your audience.
For example, if you send a promotional mail and the customer doesn't open it, you can get a follow-up with an SMS.
According to Omnisend, omnichannel campaigns have a 494% higher order rate. Why is this rate so high? It's because omnichannel campaigns put customers at center stage instead of business.
Here's an example to understand how an omnichannel campaign works.
In an omnichannel campaign, you would set a different message on all channels like SMS and email. Instead, you will look at people who didn't open an email. Then, provide a time-sensitive incentive to make them open the mail through personalized SMS.
In other words, how the customer interacts with you influences your messages and channels.
Here’s an example of an omnichannel birthday workflow:
5. Don’t just sell — educate
Customers who don't like being sold to. Remember the last time you enjoyed a call with a salesperson? It was never, right? So, if someone constantly focuses your business on selling, it might be hard to keep a customer.
So, instead of selling, try the educational way. This means providing valuable content to your customers to keep them engaged. You can educate them in several ways. Some of these ways are:
- Create how-to articles and videos to explain how they can use the products efficiently.
- You can also maintain a blog and email newsletter to discuss your customers' concerns.
It is essential to focus on each stage of the buying process - awareness, consideration, and advocacy. It is because a person unaware of your brand will not convert to content that targets a brand-aware audience.
what are the benefits of customer retention for Your Businesses?
1. Reduce customer acquisition costs
Research highlights that gaining a new buyer costs five times more than retaining an existing customer. But why?
It’s because customer acquisition is a costly and time-intensive process. You have to spend a long time targeting the audience, getting your message to them, and building trust.
Hence, customer retention helps you reduce costs by building long-term relationships with existing buyers and making them feel valued.
2. Increase Competitive Advantage
Every business faces competition. However, focusing on customer retention ensures that your existing customers will continue to buy from you instead of competitors.
This is because the customer retention strategy includes understanding your buyer needs on the deepest level. For this to happen, brands must continuously seek feedback during purchase and at cancellation. The feedback gives the foundation for understanding where to improve your service or product.
3. Reduced Marketing Efforts
When your customers already know your brand and products, they require less marketing efforts to convert. This reduces market efforts means your team can focus more on other activities that generate revenue.
4. Customer Lifetime Value (CLV) Maximization
Customer lifetime value is a metric that tells the lifetime value of the acquired customer. For example, the Customer lifetime value of Apple users is 8,000 over 20 years.
When you focus on customer retention, you improve the CLV because retained customers make purchases over extended periods.
Now that you have learned the benefits of customer retention let's move on to customer retention strategies.
How To Measure Your B2B customer retention?
There's a formula to measure your customer retention rate. It's straightforward. Below, we have given you the formulae and an explanation for using them.
Calculate the customer retention rate with this formula:
[(E-N)/S] x 100 = CRR
- S is the number of existing customers at the start of the period.
- E is the number of total customers at the end of the time.
- N is the number of new customers added to the period.
Let’s take an example. Suppose you want to calculate the customer retention rate for the first quarter (3 months), and your variables look like this.
- S (Number of Existing Customers at the Start): 500 customer
- E (Number of Total Customers at the End): 700 customers
- N (Number of New Customers Added): 100 customers
Plug these variables into the formula, and you get Customer Retention Rate = 120%
How to Boost Your B2B customer retention with Worknet?
1. Deliver a personalized and efficient experience with AI Copilot
Improving customer retention with Worknet involves leveraging AI-powered capabilities to enhance customer support, streamline workflows, and deliver a personalized and efficient experience. Here are specific ways you can utilize Worknet to boost customer retention:
- Comprehensive Summaries: Get quick summaries when a ticket is completed to review necessary details quickly.
- Auto-Prioritization: Automatically prioritizes support tickets, promptly resolving urgent issues.
- Insights and Visibility: Gain insights into work that might go unnoticed, enhancing overall operational visibility.
2. Streamline communication with team inbox
How will you support agents in answering customer queries on time if they have to manage multiple inboxes simultaneously? That's where Worknet's team inbox comes to the rescue.
Offering a centralized communication hub minimizes duplication of efforts and facilitates seamless ticketing integration. All these features helped with improved efficiency, responsiveness, and overall customer satisfaction.
3. Improve team productivity with Slack BI Dashboard
Slack BI Dashboard helps with customer retention by providing valuable insights into team engagement and productivity within the Slack platform.
Here's how this tool helps with customer retention:
- Monitor Response Times: Quick responses contribute to improved customer satisfaction and loyalty. This tool allows you to monitor response times, helping your team stay responsive to customer inquiries.
- Monitor peak activity period: By understanding the peak activity periods when your team receives the highest customer inquiries, you can efficiently plan and handle customer interactions.
- Resolution Time Metrics: Understanding resolution time is critical to resolve customer queries promptly. This tool provides average resolution time metrics, which help identify areas for improvement. Faster issue resolution contributes to positive customer experience and higher retention rates.
There are no shortcuts to customer retention. No matter how many strategies or tools you use, if you don't focus on building long-term relationships, customers won't stay.
After all, what's differentiating you from 100 other faceless brands? However, hopefully, we have helped you understand why keeping a customer is more profitable than constantly gaining new customers. Don't forget to leverage automation tools to help your customer service agents.