Why you need to build Customer Retention Strategies with your Help Desk System
Help Desk software will increase the efficiency of your support agents and improve the overall end-user experience, but, equally as important, it can also be used to enhance brand loyalty and develop a successful customer retention strategy.
Typically, the importance of customer retention is overlooked amongst the many other benefits offered by a help desk solution. But, as it costs businesses up to five times more to acquire new customers than it does to retain existing ones, it’s time to start taking customer retention seriously.
This article explores the concept of customer retention and why it’s vital to place a strategy at the core of your business processes. You’ll also learn how Help Desk Software can be implemented to utilise customer retention and take your service tasks to the next level. Here’s what we’ll cover:
What is customer retention?
Customer retention is a marketing strategy used to retain and extract more value from existing customers.
By nurturing your customer relationships, you can keep customers loyal and happy. In a 2017 Microsoft study, 96% of respondents said that customer service is important when it comes to brand loyalty.
Broadly speaking, this means delivering excellent customer service and reducing the amount of effort a customer has to make to enjoy the product or service they’ve purchased.
The aim of customer retention is to increase Customer Lifetime Value (CLV) and reduce churn. CLV represents a customer’s total worth to a business, during the time in which they’re a customer. For example, if one customer spends £100 per year with your business every year for five years, their CLV would be £500.
Why customer retention is good for business
As well as building your customer base and acquiring new users, it’s important to focus a large part of your business strategy on customer retention. Here’re three compelling reasons why:
- It costs roughly five times more to get a new customer than it does to retain one.
- Increasing customer retention by as little as 5% will lead to an increase in profits by 25%-95%
- You’re 60-70% more likely to sell to existing customers, compared to a 5-20% likelihood of selling to new customers.
Even a minuscule increase in CLV can lead to substantial gains in overall revenue. For example, imagine that 500 customers are each spending £25 per month on a subscription service. The average lifetime of a customer is six months, equating to total revenue of £75,000. By retaining these existing customers for ten months instead of six, an extra £50K in revenue could be achieved.
But, you may be asking yourself, how can you convince customers to stay with your business and not be tempted to look elsewhere? Some customer retention strategies examples include:
- Setting up a loyalty program
- Offering free samples and gifts
- Providing regular loyalty discounts
- Sending out personalised thank you notes
But, one important factor you should be focusing on is the interaction you have with your customers when they’re seeking advice and assistance.
This means dealing swiftly with complaints, being responsive on social media and providing the opportunity for your customers to get in touch via multiple communication channels.
Effectively managing all the strands of your customer retention strategy can, however, be challenging. But this is where customer retention technology, such as help desk software, can help.
5 Ways Help Desk Software Can Increase Customer Retention
A help desk solution will provide features such as analytics, automation and omnichannel support to help build an accurate and effective customer retention strategy. With these tools, you’re able to:
1. Align your multichannel support
Customers have a range of ways to get in touch with and buy from a business, including:
- Social media platforms (Facebook, Twitter, Instagram)
- SMS & Direct message
- Live chat
Rather than these channels acting as individual touchpoints, customers should feel as though they’re getting a unified and contextual experience – no matter which channel or device they’re using.
According to the Microsoft 2017 State of Global Customer Service Report, 66% of consumers surveyed said that they actively use three or more channels. With many customers jumping from channel to channel throughout a single enquiry, an omnichannel, cohesive approach is crucial.
Help desk software brings together all your support channels to allow you to offer an omnichannel experience. Your agents are able to access each customer’s full order history, previous conversations and any other notes – irrespective of the channels they’ve used.
This service also means your customers won’t have to waste time repeating themselves – something that 31% of UK consumers consider to be the most important aspect of a good customer service experience.
2. Enable proactive support processes
Exceeding your customers’ expectations is a solid way to take your customer service levels from good, to outstanding.
It’s also an important step to ensuring a good customer retention rate, with 58% of UK consumers admitting they have a more favourable view of brands that contact them with proactive customer service notifications.
By utilising your help desk’s insight tools, you can potentially identify customers who are using your product/service less frequently than usual. You can then re-target them with a personalised email to try to resolve any issues.
3. Speed up and improve your customer service
Many help desk tools have automation capabilities, which are enormously helpful in improving and speeding up resolutions.
Auto-responders, for instance, can keep customers up-to-date on the status of their request. They can also include links to tutorials and help articles in case the customer wants to resolve a query themselves.
By automating responses to knowledge base content such as FAQs, your customer service agents have time to focus on more complex problems and provide in-depth support to your most valued customers.
4. Provide an effective self-service module
90% of global consumers expect businesses to offer a self-service online portal. Help desk software allows you to create and display necessary documentation, such as help articles and online training, in a separate area of your website.
This allows customers to research and find answers to their problems themselves, without the need to create a support ticket.
An excellent example of a self-service portal that performs admirably is Canva. It provides a range of tutorials and online support that web visitors and subscribers can make use of without having to get in touch.
5. Report on Service Level Agreements (SLAs)
Help desk software helps you to monitor customer service agents and ensure that SLAs are being met.
Through reporting tools, you can look closely at the response and resolution times of your agents, which, in turn, gives you an indication as to how happy your customers are likely to be.
Summary: Utilising Customer Retention Technology Through Help Desk Software
Customer retention is just as crucial as customer acquisition. By keeping your customers happy, they’re more likely to remain loyal to your business and can significantly increase your total revenue over time.
Support should form a key pillar of your customer retention strategy. Help desk software allows your agents to carry out conversations across all channels and gives them the ability to look up customer history effortlessly. It speeds up response times, reduces the effort for your customers through self-service tools, and helps you keep track of SLAs.
Discover more about Help Desk Software by reading our Help Desk Software buyer’s guide.