3 Ways to Increase Your Software Customer Retention

(This post originally appeared earlier this month in Software Marketer, an e-newsletter for B2B Marketing Directors at software companies.)

3 Ways to Increase Your Software Customer Retention

 Just a few days ago while walking my dog, I was amused to see
not only something funny, but a mixed message at the same time..
Right up ahead of us a guy was making flourescent orange markings
on the ground. He was wearing an equally bright yellow and orange
safety vest.
What’s funny or non-sensical about that? Absolutely nothing. It was
what he was wearing underneath it…
A camouflage winter jacket that would certainly help him hide in the
woods. But in this case he went all Monty Python style, i.e. “How Not
to Hide in the Woods.”
It was a complete contradiction in terms.
Did he want to be hidden from imminent danger such as oncoming traffic,
with dark camouflage clothing?
Or did he want to be visible to drivers with a vest that would make him
visible with the vest as an outer layer?
Now I may not even want the fashion cop’s job, but this man’s choices
were a contradiction.
Isn’t that exactly what marketers who allocate more resources toward

lead generation than customer retention do too?

Those marketers want to show a high ROI in their work. But according

to studies by Bain & Company, increasing customer retention by just 5%
can mean profit gains from 25% to 95%.
Meanwhile, the likelihood of converting an existing customer into a repeat
customer is 60% to 70%, but the probability of converting a new lead is
just 5% to 20%.
So the ROI associated with customer retention is massive. Think about it.
Am I saying “end all lead generation efforts” though? Of course not.
But you could make your life easier by focussing on customer retention.
What are some ways you could increase your customer retention?
The first one that comes to mind is by using email marketing.
One of the best marketing channels for high ROI and ease of
implementation is email.
It may not be the latest social media platform, but according to research
by MarketingCharts, Email marketing was the most effective digital
marketing tactic for 56% of US digital marketers as of July 2014.
Use a Newsletter
You can use your newsletter to keep in touch with customers. Your
company will stay on their radar with new software you will be
releasing and special incentives to upgrade.
You can highlight a powerful case study (or you may call them
customer or success stories) in it from one of your valued
customers too.
Use Personas
Being able to custom-fit your software and other services for your
customers is easier once you’ve built a complete profile or persona
on them. Without this insight, you may be at a competitive
Become Your Customers’ Trusted Advisor
Knowing your customers’ greatest concerns or issues they may soon
experience would help you gain their loyalty and trust,  saving them
from that potential pitfall.
There you have it. Three ways you can get to your goal of
increasing customer retention.
Comments? I encourage you to leave them below.

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