Benefits Of Maintaining Customer Relationships
Customer Relationship management is the process of understanding customers and using that understanding to come up with strategies that will allow an organization to raise exit barrier for customers. It also allows organizations front-facing departments of Marketing, Sales and Customer Service to work together in order to do business from the customer’s perspective. In this article, I want to talk about some of the benefits of maintaining customer relationships. Follow me as we are going to look at this together in this article.
When it comes to maintaining relationships with existing customers, there are many organizations that do take their existing customers for granted. It is so worrisome that some organizations cannot say the exact number of customers that they have. How will that kind of organizations be able to come up with plans that are geared towards raising the exit barrier for customers? You need to know that your existing customer is as important as your new customers. You have to give them the same attention. You also need to understand that when you are losing customers, you are losing profit. You only make profit from a particular customer when you are able to retain them in your lifecycle.
Another major step that organizations need to take is for them to come up with customer loyalty programs. You should have a way of saying “Thank you” to customers that have stuck to you through thick and thin. This will help them to know that you valued them and you are ready to do all that you could in order to retain them. These customer relationship programs can take three major forms such as discount plans, a reward for record purchase as well as opportunities for free upgrades among other measures.
Here are some of the importance of maintaining customer relationships in customer relationship management generally…
#1 Relationship matters
First and foremost, you need to understand that customers will purchase your products and services based on the relationship you have with them. It is very possible that customers will leave a cheaper product and decide to go for more expensive products from organizations that understand them and are ready to do business from their perspective. Therefore, customers are not really looking at price, they are more concerned about the attitude of the seller.
#2 Nurturing is cheaper
Over time, you also need to understand that the cost of nurturing an existing satisfied customer is cheaper than the process of trying to attract new customers. When you are trying to cajole a new customer to buy your product, you might have to use all tactics that you know in order to cajole such prospects. Some have to run jingles on TV and Radio among others. Some go as far as giving free samples. At the end of the day, it is not all your customers that will respond to such offers. For your existing customers, they will still appreciate you if you decided to be nice to them. Some will even convince their friends and relatives to buy from you as a sign of gratitude.
#3 Much easier
Also, it is easier to sell to customers that are already familiar with your products and services than new customers who have not had personal experience with your products and services. For those customers that have tasted your products and services, they are going to make purchases based on their past experiences with your products and services. Therefore they do not need any additional information from you before they will actually decide on whether to buy your product or not.
Here are some other facts that you need to know…
- Repeat customers spend 33% more than new customers.
- It cost six times more to sell to new customers than existing customers
- Referrals among repeat customers are 107% higher than the non-customers.
The challenges in maintaining customer relationships…
With the spread in the reach of internet customers, one can access information about products and services of various companies. This ensures that customers do not need to leave the comfort of their homes before they could have information about organizations and products and services. This makes the marketplace to become more competitive.
With the access to information provided by the internet, customers are more concerned about quality and cost of products and services. Also maintaining customers require a well-managed supply chain, which often becomes a very difficult task.
Above all, it is difficult to achieve emotional customer relationships or brand loyalty as customers could be lured by competitors with more lucrative offers than yours.
I know you might agree with some of the points that I have raised in this article. You might not agree with some of the issues raised. Let me know your views about the topic discussed. We will appreciate it if you can drop your comment. Thanks in anticipation.
Download Our App.
CEHNigeria On Google Playstore
Download Our Blog App On Google Playstore.
GET SEOPOZ. OUTSMART YOUR BLOG COMPETITORS
Have a deeper understanding of Google Search Console. Joint SEOPOZ for free.
Join Our Whatsapp Group Here
Join Our Whatsapp Group
Follow Us On Twitter and I will Follow Back
Follow Us On Twitter
Kindly follow me on Twitter and I promise I will follow back. Aside you will get updated when we post new articles.