Your product is amazing, and you’ve nailed down your niche market. Now it's time for the true test of your hard work: scaling effectively.
So ask yourself and your leaders, “What is growth?” Does growth mean acquiring new customers? Or dedicating resources to existing customers? Maybe a mixture of both?Let’s add more context and define why customer retention and renewals are important. According to research done by Frederick Reichheld of Brain & Company, increasing customer retention rates by 5 percent increases profits by 25 percent versus acquiring a new customer (which can cost five times more than retaining an existing customer).
Customer retention strategies like educating and great customer service will increase customer loyalty. Other benefits of customer retention, besides the cost savings previously mentioned, are increased word-of-mouth referrals, increased profit, and the ability to measure product success.
Methods to Increase Customer Retentions and Renewals
Increasing customer retention and renewals starts at the very beginning of your relationship. The process to help customers see the value of achieving their goals by using your product or service is fostered by communication, trust, and mutual growth.
One of the most important ways to increase customer retention and renewals is by providing the opportunity to receive quantitative and qualitative feedback from your customers. Did you know that 96 percent of unhappy customers churn without ever giving a reason why? Take a look at these seven SaaS customer retention mistakes to look out for.
Customer service and support software is the engine to growing (not losing) customers, when it comes to the customer retention and renewal process. Creating an experience to delight your customers founded in customer satisfaction will result in retention and loyalty.
HubSpot’s Service Hub offers support and customer service with conversational tools to make communication with customers and reps easy. Features like help desk automation, a knowledge base, surveys (including net promoter scores, or NPS), ticketing, and customer portal service as effective tools to measure experience and to pinpoint what needs improvement.
HubSpot Sales & Service Tools You Can Use for Customer Retention & Renewals
Having trouble creating a process to increase customer renewals and retention?
HubSpot Sales Hub is business software that features an enterprise-grade customer relationship management (CRM) platform, AI-powered sales acceleration, connected configure-price-quote tools, and streamlined sales reporting. Customer renewal processes can be supported by setting up a different pipeline within the tool in order to notify reps when a contract is due for renewal, prompting them to nurture the customer.
Together, HubSpot Service Hub and Sales Hub are a powerful force to reckon with. With these two tools, a customer delight experience has never been more fluid to implement.
For example, let’s say that a sales rep gets notified through Sales Hub that a contract is due for renewal in six months. A workflow can automate a feedback survey (using Service Hub tools) to be sent at that unique time to gauge customer happiness when their renewal time approaches. The customer’s response will prompt the nature of the contact owner’s next steps, or it might lead down a path of enhanced automation nurturing the customer appropriately in order to renew.
HubSpot’s robust reporting tool gives insight on your customer's unique level of delight in their journey. It also can guide the future success of your customers through targeted and intuitive retention and renewal strategies.
Unify the Customer Journey from Prospect to Customer Retention & Renewal
Ready to unify your customer journey from prospect to renewal? Watch this webinar on demand to learn about trends in customer success, why customer-centricity is a key growth driver, key components of the customer journey, and how to properly engage customers.