Customer retention, or client retention, is how well your company can turn customers into repeat buyers and prevent them from switching to a competitor. Customer retention strategies allow you to both provide and extract more value from your existing customer base.
The 'moments of truth' are when a brand converts hesitant customers into loyal followers by creating emotional connections with them. A connection like that should happen right away and get stronger over time. Investing in positive emotional experiences will increase your retention rate and create a solid customer base.
Renewal management is arguably more important, since it’s low cost but high value and offers stability. Whether you run vehicle insurance contracts or provide financial robo-advisory through SaaS platform, if you can renew contracts smoothly and efficiently, you will keep these customers long term. But in many organisations, the renewal management process continues to be entirely manual, or at best, only part-automated. As a result, ensuring renewals happen on time is a labor-intensive and tedious job. Worth mentioning, renewals are an important opportunity to offer the customer additional services. However, if the process is done manually, the renewals team may simply not have the time to offer personalised deals.
If your renewal management process is automated, you significantly reduce churn and get back more time to think strategically, developing your offerings for different customers, offering a personalised experience for high-value accounts and providing a better customer experience overall. At the end, companies with high retention rates grow faster and make more money. So, is it time you reassessed your customer retention process?