Customer Retention Challenges & Solutions: Part 2Featured
Last week’s post, Customer Retention Challenges & Solutions: Part 1, introduced four customer retention challenges and solutions. This week, we will discuss the challenges that arise with customer rewards programs, customer training, marketing the value of your product, and collecting and implementing customer feedback.
Rewards Programs & Customer Training
Challenge #5: Poor rewards programs.
The eCommerce marketing platform Yotpo, an eCommerce marketing platform, released a State of Brand Loyalty Report in 2021 showing that 83% of customers are influenced by loyalty programs in their decision to return to a brand after their first purchase.
Booking.com is an example of a company with a robust loyalty program. Not only that, they use frequent email campaigns to remind customers of their loyalty benefits—discounts, free breakfasts, priority customer care, and free room upgrades. Because of these benefits, Booking.com enjoys a high rate of return customers and is backed by a high customer service score.
Booking.com is an excellent example of a company focusing marketing efforts on new and existing customers. Are all of your marketing efforts focused on attracting new business? A customer loyalty program may not be on top of mind for you, but the data from the Yotpo loyalty report shows that loyalty programs can help with customer retention. You want your customers to keep coming back, and your business will benefit financially when existing customers are retained, as you will have lower costs associated with acquiring new customers.
Challenge #6: Inadequate customer training.
It’s important to educate customers on the value of your product and how it can help them accomplish their goals. For example, PandaDoc sells software to help teams create, manage and e-Sign documents with ease. PandaDoc’s Customer Success professionals focus on helping customers incorporate PandaDoc’s software into their workflow, offering guidance on how to best use the software with specific use cases.
Product training is a great way to educate your customers on the best ways to use your product. Work with your product, implementation, support, and success teams to better understand the desired outcomes of your customers and how clients are using your products and services to accomplish these goals. Build curriculum that aligns personas and use cases so offerings have relevancy and value.
Value-Based Marketing & Customer Feedback
Challenge #7: A lack of value-based marketing.
This retention challenge highlights customers who need help seeing the full value of your product and what the product can do to help them reach their goals. As a result, they may become disengaged. This is why it’s important to have value-based marketing that highlights your product's unique selling points.
In order to identify the best way to push value-based marketing to your customers, ask yourself what makes your product different from competitors—what makes your product unique? Work with your sales team and outline the selling points that highlight the value of your product(s) and brand. Then, use those conversation points with customers in conjunction with speaking to capabilities.
Challenge #8: Non-existent implementation of customer feedback.
Your customers will share feedback about your products and services and retention challenges can arise if you do not consciously listen to that feedback from your customers. A well-articulated strategy for collecting customer feedback is a cornerstone for improving customer satisfaction.
Various methods can be used for collecting feedback. For example, PandaDoc uses UserVoice's product feedback management software to collect customer feedback. Collecting and assessing feedback in a timely manner, taking action and communicating plans to customers, and implementing based on commitments made will go a long way in keeping customers happy and engaged.
Recap & What’s Next
Take note of some of the highlights and main points from today's four challenges & solutions:
- Implement a rewards program – existing customers are 83% more likely to make multiple purchases when a rewards program is available.
- Anticipate the needs and challenges of customers while they use your product and incorporate this into customer training resources.
- Highlight your unique selling points to customers so they will continue to see the value in your product(s) and brand.
- Have a system to collect, analyze, and implement customer feedback.
Now that we have discussed all eight customer retention challenges & solutions, take one hour this week and meet with your customer-focused teams to discuss the mechanisms you have in place to address these challenges. If you don’t have a system in place, get started!
Next week, I will share the details of a recent interview with a Senior Customer Success Manager here at PandaDoc regarding the current state of Customer Success. You’ll hear about the top three retention challenges this past year and get some good advice on approaching at-risk accounts.
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