Blog Post B2B customer retention is the key to improving business profitability. Read this guide to discover the best customer retention strategies.
Syed Hassan ZamanRetaining existing clients is more cost-effective than acquiring new ones. More so, loyal customers will be willing to pay more for your product or service. According to a study, about a 5% increase in customer retention can result in a 25–95% increase in profits for B2B companies.
B2B customer retention ensures long-term relationships with customers. And it’s not just the relationship; these customers tend to stay loyal and even spread your business because of exceptional services.
That said, with the right customer retention strategies, you can make the customers stick with your business for a long time. So, let’s get in and see those strategies.
B2B customer retention refers to the strategies and action plans that B2B companies use to ensure client retention. It is the company’s ability to turn a customer into a repeat buyer, prevent them from switching to a competitor, and maintain a healthy relationship with the customer after the initial purchase.
It is important for every business as it’s cheaper. According to Econsultancy, about 70% of customers believe that it’s cheaper to retain customers than acquire a new one. That said, loyal customers spend more over time and are more likely to refer others and spread your business through word-of-mouth.
While a B2B retention rate depends on the industry, companies typically aim for a rate of 85% or higher. But it’s not just about the rate; companies should also strive for profitability and customer quality. For that, they should follow effective strategies for customer retention. Here is what you can implement for your business:
According to research by Epsilon, 80% of consumers are more likely to purchase from a company that offers personalized interactions. Therefore, the first strategy for B2B retention marketing should be personalization to build trust among your clients. When your customers are valued, respected, and feel heard, there’s hardly a chance they would go elsewhere.
This is why you should employ strategies like using customer data to understand their problems and preferences, consider customizing emails to address each of your customers personally, and set up autoresponders like AI Chatbot customer service for quick responses.
A brand’s reputation greatly relies on exceptional customer service, and that alone should be the reason why you should follow up with your customers. When you turn back to your customers, it gives the impression that you care about them, which is very rare in most companies. This is why it’s truly an important B2B customer retention strategy.
You should even keep following up with the customers who may have faded away in the background. This is particularly important when you notice that the client has not placed any order for a while or has canceled an order. This is just the right time to initiate a conversation with them and invite them to your brand again by addressing their concerns.
Rewards and loyalty programs are meant to thank the loyal customers. They are beneficial not only to the customers but to the business as well. According to research, 80% of customers are likely to stick to a company if they have a good loyalty plan for their customers.
The benefits you offer for B2B customer loyalty should be excellent but must also be doable from your side. You can offer rewards or discounts for repeat purchases. This strengthens your relationship with the customers and increases their commitment to your brand.
Feedback is a great way to understand your customer's perception of your company. It helps you know what they like and dislike about your products, services, or brand in general. Active listening and analyzing the feedback help address the issues and incorporate the suggestions. All this ensures B2B customer retention in the long run.
You can incorporate many creative ways to get feedback, like creating surveys and collecting reviews and ratings on different platforms. However, just collecting feedback is not enough; a business should devise a structured process for reviewing and acting on it. Using the feedback constructively makes the customers feel valued, and it directly impacts your business.
Another important strategy for B2B customer retention is sharing your expert knowledge with the customers. While you sell your products for profits, share your knowledge of that product for free, as this helps build your brand’s credibility. This also instills confidence among your customers and shows them you are there for them through every step.
To gain customer trust, you can provide digestible guides, short video tutorials, how-to content, emails, and informative text messages. The options are endless.
Believe it or not, customer support plays a really important role in B2B customer retention. According to a study, customer retention is one of the top reasons why companies invest in customer service (as shown in the figure).
Source: SuperOffice, Truelist
To provide an exceptional customer experience, the customer service staff should be able to handle inquiries really well. For a more streamlined approach, a brand can use chatbots to generate automated responses. The team should also make an effort to provide more personalized responses. The image below shows some of the best ways of delivering exceptional customer service.
Source: Truelist
With these B2B customer retention strategies, you can build a loyal customer base. These strategies help retain customers, which ultimately turns out to be profitable for the company. The key is to understand your customers and their needs and then turn the ideas into practical steps to make the clients feel valued.
The good thing is that AI Support is here to help with customer retention strategies, particularly through AI Customer service. With that, you can now offer exceptional customer support without unnecessary delays. The automated bots can tackle the clients while your team is away working on the more important tasks.
