How CRM Systems Help Increase Customer Retention

Forrester researchers confidently claim that marketers obsess over customer acquisition, and lose focus on the equally, if not more, integral aspect of customer retention. A longitudinal study by Econsultancy established how marketers continue to be inclined towards customer acquisition over retention, in pure defiance to Pareto's 80:20 rule, that simply captures how existing customers constitute 80% of the average organization's revenue! Loyal customers are, typically your most valuable patrons because:

  • Will give you a steady flow of business
  • Can add considerably to your business revenues, with minimum marketing and retention costs
  • Retaining an existing customer can be done at the fraction of the cost of acquiring a new one
  • Often use word of mouth advertising to get you additional business, at no extra cost


In a quick interview with MR10 marketing head, they stated about CRM; Indeed, ensuring customer loyalty can be a critical factor when it comes to business survival and expansion. That’s what we’re leading to, how you can execute the business philosophy of targeting customer relationships for retention and lifetime value maximization, through top CRM tools.



1. Retain your best customers

The best part about CRM tools, both cloud-based and otherwise, is that they allow you to keep a tab of your customers’ activities, right from how often they do business with you, to how much they actually spend, and what they’re spending on. CRM software can be effectively used to segment your best customers, along with their spending patterns and preferences. Pam Mortenson, President of West Interactive, talks of how the fir, successfully retained its customers by proactively listening to the “Voice of the Customer”, including both the positives and the negatives, so that it could strive to retain their loyalty to their firm. Check out what CIO’s and CMO’s have to say, in terms of how they leverage CRM for revenue and profit optimization. You too can do the same by using NetSuite, one of the most comprehensive CRM tools. 


2. Target your customers

They say knowing is half the battle, so it’s pretty obvious that the more information you have regarding your customers, the more personalized approach you can use on each of them. 


CRM software is perfect in this respect as it:

  • allows you to view a customer’s detailed purchase history that will help you determine the kind of special offer that you can bestow upon them,
  • Effectively increases your business’s appeal. 


You could always employ useful cloud-based CRM market leader solutions like SalesForce to do this; SalesForce allows to you effectively track, manage and categorize your customers according to your needs.


3. Reward your best customers

CRM software can reveal which of your customers are responsible for the bulk of your revenue, and more often than not, you’ll realize that your company is running majorly on the income received from only a handful of clients. 

This useful information enables you to:

  • allot time and resources for customers that are actually worth your time, 
  • Avoid that nagging one-time shopper who will never interact with you again. 




For example, if you have a couple of incentives to give away, you obviously want to reward your most profitable customers with a better incentive than the less profitable ones. You can easily identify such accounts with Pipeliner CRM as it allows you to track customer spends, is supported by both Windows and Mac and can also be used offline.


For the average business, the first 12 months are a make or break period for business owners, where they analyze their customer trends and numbers and then figure out if their business is going to last or not. And since customer retention has been cited as a company’s biggest revenue driver, according to KPMG, let us see how CRM tools can actually help businesses increase customer retention.


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