“If your retention is poor, then nothing else matters.” The Founder/CEO of Reforge states it better than anyone. Customer retention is the best way to grow your SaaS business without acquiring new customers. So, crafting well-planned B2B customer retention strategies becomes a must. Stats reveal that repeat customers accommodate up to 40% of an ecommerce store’s revenue.
What’s even more surprising is that this 40% share of revenue is generated by only 8% of customers, your repeat customers. If customer retention is so important, why do successful companies spend millions of dollars on Facebook, Instagram marketing, and Google Adwords to acquire new customers?
As per the study conducted by Profit Well, the overall customer acquisition cost reached up to 50% in the last decade, eating your profit margins. So, you must also focus on making your present B2B BigCommerce customers happier as it is much more efficient.
In this blog, we will discover how most successful B2B businesses are focusing more on customer retention. We will also discuss winning B2B customer retention strategies for your BigCommerce store.
What Is Customer Retention?
Customer retention is how long your existing customer stays with your business. As per a study conducted by Harvard Business School, a 5% rise in customer retention can enhance profits by 95 percent. Mind-blowing, isn’t it?
This study unlocked one of the greatest treasures to climb your business ladder. Thus, comprehending the true essence of customer retention meaning becomes as important as acquiring new customers.
Customer retention is way cheaper and impacts more than customer acquisition. Companies can witness dramatic success if they focus more on retaining customers than acquiring new ones.
Capturing new customers is the ultimate objective of every business. When complex B2B businesses are considered, acquiring new customers and selling to them include:
- Creating expensive marketing & lead generation campaigns.
- Holding frequent sales meetings.
- Collaborating with other businesses & influencers.
- Enhancing cybersecurity measures.
- Enabling payments.
All of this may naturally take months to years to get the optimum results, eating away a portion of your profits. Thus, the need for powerful B2B customer retention strategies emerges to leverage the potential of customer retention in generating your business revenue.
Customer Retention Rate Formula
The customer retention rate is calculated using a simple formula:
CRR = ((E-N)/S) x 100,
- where CRR is the customer retention rate,
- S refers to the number of customers at the start date,
- E refers to the number of customers at the end date and
- N is the total number of new customers acquired during the period.
How Do You Measure Your Customer Retention?
Customer retention KPIs (Key Performance Indicators) are the metrics to measure your company’s customer retention rate.
Some widely used customer retention KPIs to consider in your B2B customer retention strategies are customer lifetime value, monthly recurring revenue, Net promoter score, Revenue churn rates, customer satisfaction, etc.
Customer Retention Rate Vs Churn Rate: How Do They Differ?
Both customer retention rate and churn rates help you learn how effectively your business is retaining customers. Customer retention rate meaning the total number of customers staying with your brand, whereas churn rate refers to the number of customers that leave your website.
A bad churn rate represents the loss of customers, so you must seriously reconsider your B2B customer retention strategies & modify them as per the requirements.
Selling to existing customers is fast, easy, and can save you relatively big compared to customer acquisition.
Top B2B Customer Retention Strategies:
Your retention strategies must aim to optimize every customer touch point. You should find ways to find their needs and deliver beyond their expectations right from the first interaction with your visitor.
Here are some tried and tested customer retention strategies to help you grow your B2B BigCommerce store while being smart with money.
1. Create A Memorable Onboard Experience
Unlike B2C, B2B businesses involve high-value purchases. Thus, customer relationships last several years. As a result, it is a good gesture to provide your customers with a warm welcome and guide them through your products.
- Provide personalized welcome messages for your customers.
- Evaluate your onboarding experience regularly based on customer feedback and incorporate the industry’s best practices to enhance the onboarding experience.
- Provide resources, including blogs and ebooks, to guide them to the best results.
2. An Effortless Checkout Experience
When you create an unmatchable checkout experience for your customers, it saves them time & effort. This experience stays in their mind until they witness another amazing customer experience.
For instance, every time your past customers wait during checkout at another store, they miss your website’s amazing interface. As a result, they are naturally drawn toward your business. It is an innovative and genuine way to improve customer retention without spending too much.
Needless to say, a great customer experience and retention go hand in hand!
3. Loyalty Programs For Existing Customers
One of the best B2B customer retention strategies to delight your existing customers is rewarding them with gratitude. Make them feel special for buying from your brand. Provide special discounts, exclusive offers, free shipping, or early access to new products.
4. Provide Personalized Product Recommendations
According to the study conducted by Pros, over 90% of B2B buyers expect personalized product recommendations, and more than half of them are willing to pay higher prices for personalized recommendations.
You can leverage AI and other advanced technologies in your customer retention strategy to deliver tailored experiences for your customers and help them quickly discover their products.
5. Outstanding Customer Service
86% of B2B consumers admit they are willing to spend more for a great customer experience. A great customer experience will encourage customers to buy more and let them share the experience with their friends.
However, the constant chase for technology makes companies ignore creating customer experiences with a human touch that is essential to keep customers connected with your brand. As a result, customers feel disconnected from your company and gradually move away from the brand.
Technologies like a customer retention tool should be leveraged to create loyal customer relationships. You must also focus on providing unparalleled customer experience & support whenever needed. Some of the ways of providing a good customer experience include:
- Providing multiple customer touchpoints like email, live chat, call, and social media.
- Simplifying customer self-service through FAQ section, knowledge base, help centers, and other community forums.
- Thanking customers for providing feedback. Remember to reflect on negative reviews.
6. Keep Monitoring Your Strategies Regularly
No strategy is perfect. The loopholes & any setbacks gradually begin to surface once the strategies are implemented. Thus, it is essential to regularly check the customer experience and retention rates while identifying the areas for improvement.
Regularly evaluating your customer’s interests, buying behavior, their pain points lets you streamline the process according to them. It enhances customer satisfaction and loyalty towards your business.
7. Encourage Special Discounts and Promotions.
Surprises keep your customers excited about your brand. Ensure you provide surprise gifts, additional discounts, & personalized promotions for your customers. Send these surprising gifts on their birthdays, your business anniversary, or special events like product releases, etc.
Brainstorm with your teams to develop interesting ideas and learn how your competitors treat their customers. Your sincere efforts to make your customers happy will boost customer loyalty and foster customer retention.
8. Invite Them To Join Your Community
Creating a community is a great way to engage your customers. This helps you assess what they want and stay in touch with them. Create dedicated B2B community groups through social channels, online discussion forums, private networking sites, etc.
This community lets you help your customers by answering their doubts, acquiring feedback and suggestions, learning their buyer patterns and pain points, publishing high-quality content that educates them, etc.
To accelerate your customer retention journey further, consider popular customer retention tools like Zendesk, customer.io, Tango, Hotjar, Baremetrics, ActiveCampaign, Amplitude, etc. Each customer retention tool offers data-driven insights to help you make informed decisions and enhance your marketing efforts.
Acquiring new customers from all possible channels is fascinating and necessary for your B2B BigCommerce business growth. Digital channels and unlimited access to technology make it easy to reach a larger audience.
But, enhancing your customer retention efforts can significantly affect your profit and revenue growth than customer acquisition. B2B customer retention strategies like personalized product recommendations and loyalty programs mentioned in this article help you grow a loyal customer base who can stay with your business.
So, consider the aforementioned strategies to take your B2B BigCommerce store to the next level. If you need help retaining your customers, you have already reached your destination. Cronix is a BigCommerce-certified agency specializing in developing profitable ecommerce stores across multiple niches. We help our B2B clients upgrade their BigCommerce marketing efforts so that their visitors get converted into loyal customers in no time!
Get the benefit of 13+ years of experience. Get in touch with Cronix today.