B2B or business-to-business marketing on customer retention, concentrates on designing programs to retain existing customers and advance the lifetime value of the customers. Therefore, customer retention strategy is important to be applied, so that you can develop your business according to your customer's needs. By adjusting your strategy, you can make the customer contented, and make them want to keep doing repeat purchases from your brand.
Scenarios for customer retention
Retaining customers on a basic level, you generally just keep them pleased with your service. The happy and satisfied customer will always come back to doing business with you. You can apply these several scenarios to optimize the customer retention process.
Build a customer relationship that is sticky
Create a really sticky customer relationship to avoid your customer from switching to competitor’s brand. For instance, you might want to offer a long-term subscription, let’s call it a year, with a low cost but there will be termination fees for customers who want to stop the subscription before the period ends. The point is, the customers want certainty, they will be happy when you can fulfill their needs and your brand will become more sticky with them.
Raise the switching costs
Switching costs will be enforced when customers do the changeover from one brand to another. The more your product can accommodate customer’s daily needs, the bigger switching costs that they will pay. For instance, for you who work in a property company and should handle the damage on one of your customer’s property, there will be a long process ahead of you, including a location visit with them to show all the processes and procedures. If your customer suddenly wants to switch suppliers in the middle of the process, the switching costs for them will be higher.
Spoiled your customers so they will become your brand advocates
B2B marketers have to come up with plans to get their customers spoiled and delighted. There will be times when there will be some changes from your brand that could shocked and upset customers. Those customers that you spoiled are the one who are truthful and loyal to your brand. They will tell people about the excellency of your brand value. In fact, they want to be your partner so they will get more value from you. Of course that will open an opportunity to gain insights for your brand development.
Lifetime customer value (LTV) optimization
To help increase customer retention, as B2B marketers, you need to optimize the customer lifetime value. It is the revenues gained from customers during their subscription with your brand from the very beginning until today. The most common way to escalate LTV is through cross and up selling. The cross-selling method can be done with offering products or services that as a complement for customers. For example, a customer wants to buy a laptop and you can offer them a headset and mouse at once as a complement product. On the other hand, up-selling is offering the same product or service that the customer has previously but with a premium version of it.
You can be in so much trouble and difficulty to develop your business if you don’t have a customer retention strategy. Just remember these important keys of marketing. Creating a sticky customer relationship to delight and spoil them and optimize the customer lifetime value.