3 Ways to Increase Your Software Customer Retention

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

disadvantage.

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.