The more new leads you can generate as a business, the more opportunities you’ll have to grow. Attracting new clients to your tech startup is crucial.
However, this doesn’t mean you should be overlooking the importance of retaining the clients you’ve already established a relationship with.
In any industry, your chances of selling to an existing customer are usually between 60% and 70%. Compare this to your chance of a conversion, which languishes at only 5% to 10%.
Simply put, your existing clients are some of the most valuable assets you have.
Fortunately, retaining these loyal customers doesn’t have to be an exhausting or expensive process.
Even smaller tech startups can improve their chances of retention with a few simple tips.
Get the Onboarding Process Right
Customers are more likely to stick with companies that have proven capable of solving their problems.
And the easiest way to make sure your customers get the best results from your products or service is to know how to use them.
A good onboarding strategy is an excellent tool for customer retention. It’s a chance to segment your audience based on the problems they need to solve and provide them with ways to access quick wins with your technology.
Onboarding strategies can include tutorials and blog posts to teach your customers how to use the parts of your product they’re most interested in.
You can also build in-product tools like wizards and chatbots to answer questions quickly.
A good onboarding process will reduce the risk of your customers becoming frustrated or unsatisfied when they feel like they’re not getting the most value from their purchase.
You can send customers videos showing them how to access specific features or link them to your website for extra guidance. Some tech companies even offer one-on-one support with customer success teams to make their startup stand out.
Build a Customer Retention Program
Members of loyalty programs spend an average of 12-18% more per year than other customers. Therefore, inviting your clients to join a loyalty or retention program is an excellent way to keep them engaged with your business.
Fortunately for smaller startups, building one of these initiatives doesn’t have to break your budget.
You could start by implementing a loyalty program where customers can earn points they can exchange for rewards every time they make a purchase with your business. These rewards can be anything from discounts on their next subscription to branded merchandise.
Another option is to use your retention program to give loyal customers access to exclusive benefits.
For instance, after someone signs up for an annual subscription with your business, they could get access to new features as part of a beta testing group, ahead of other customers.
These clients could also have early access to new blog posts, training webinars, and other useful tools offered by your company.
Your retention programs can even pave the way to opportunities for finding new customers, like referral programs, where clients get benefits for bringing new clients to your business.
The key to success is making your customers feel valued and rewarding their loyalty in a way that makes them want to stick around.
Listen to Your Customers
Sometimes, the most successful strategies for earning and retaining customers are also the simplest. Although it can take a lot of time to sort through and respond to customer feedback, the more information you collect from your clients, the better off you’ll be.
Startups searching for opportunities to grow can use testimonials and reviews to guide their decision-making strategies.
Even if you get a negative review from a customer, you can use that to determine what issues need to be addressed in your technology.
Listening to your customers ensures you’re not ignoring the issues that could be alienating your clients.
Some studies indicate that around 80% of companies believe they deliver a great experience, but only 8% of consumers feel the same way.
Make it easy for customers to speak their mind by regularly sending out surveys to evaluate customer sentiment, making sure your customers can contact you on social media, and signing up for tech review sites like G2.
Every time you get a review, see it as an opportunity to learn. If your customers see you really listening to their feedback, they’ll feel more invested in your brand.
Make sure your customers have a way to connect with you easily when they need immediate support too.
Investing in a range of customer service channels, including self-service, instant chat, and email service tickets, will help you to keep customers happy by quickly solving their issues.
Retain Your Hard-Won Clients
Studies consistently demonstrate the power of retaining your customers.
According to Bain & Company, returning customers spend up to 33% more than their peers. What’s more, raising retention rates by only 5% can increase profits by 25%.
Make sure you’re supporting and delighting your customers through every stage of the buyer journey, and they’ll reward you with valuable, ongoing loyalty.
Ashley Wilson is a content creator, writing about business and tech. She has been known to reference movies in casual conversation and enjoys baking homemade treats for her husband and their two felines, Lady and Gaga. You can get in touch with Ashley via Twitter.