{"id":2772,"date":"2017-09-28T17:00:58","date_gmt":"2017-09-28T17:00:58","guid":{"rendered":"https:\/\/www.walkme.com\/blog\/?p=2772"},"modified":"2023-05-02T15:42:20","modified_gmt":"2023-05-02T15:42:20","slug":"improve-customer-retention","status":"publish","type":"post","link":"https:\/\/www.walkme.com\/blog\/improve-customer-retention\/","title":{"rendered":"Avoid These 5 Mistakes to Improve Customer Retention"},"content":{"rendered":"<p>Customer retention is one of the most important indicators of success for SaaS companies, but many organizations \u2014 even those with stellar products and services \u2014 fall short of their potential.<\/p>\n<p>A combination of bad habits and underutilizing available tools is largely to blame for suboptimal <a href=\"https:\/\/www.walkme.com\/blog\/infographic-customer-retention\/\" target=\"_blank\" rel=\"noopener\">customer retention<\/a> and loyalty. The importance of customer retention cannot be overstated in a highly competitive market. As software services continue to progress, clients will not hesitate to move from one vendor to another if it means getting better tools.<\/p>\n<p style=\"text-align: center;\"><a href=\"https:\/\/www.walkme.com\/pages\/cx-walkmeblog-corporate-000-s\/?eco=cx&amp;adin=improve-customer-retention-ll01&amp;land=cx-walkmeblog-corporate-000-s&amp;pitch=Customer-Care\" target=\"_blank\" rel=\"noopener\"><em><strong>Watch your customer retention rates soar with WalkMe\u2019s on-screen guidance.<\/strong><\/em><\/a><\/p>\n<p>Before one can determine how to <a href=\"https:\/\/www.walkme.com\/blog\/saas-customer-not-satisfied\/\" target=\"_blank\" rel=\"noopener\">improve customer retention<\/a> strategy, he or she must understand how it fits in with other major priorities. For example, the benefits of customer retention and loyalty are often overshadowed by the seemingly urgent need for new clients. This and several other common pitfalls can cause companies with great products and services to lose valuable customers to competitors.<\/p>\n<p>Here are 5 mistakes that could be hurting your customer retention.<\/p>\n\n<h2>Mistake No. 1: Disproportionate Focus on Customer Acquisition<\/h2>\n<p>Expanding your client base deserves to be a top strategic objective, but not if it means neglecting the customers you\u2019ve already acquired. The cost of courting a new client can be anywhere from 5 to 25 times more than retaining a current one, according to <a href=\"https:\/\/hbr.org\/2014\/10\/the-value-of-keeping-the-right-customers\" target=\"_blank\" rel=\"noopener\">research<\/a> cited by the Harvard Business Review. That\u2019s a lot of money for something that\u2019s not even a sure thing.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-2775 size-full\" title=\"Improve Customer Retention\" src=\"https:\/\/www.walkme.com\/blog\/wp-content\/uploads\/sites\/2\/2017\/09\/Customer-retention_images-1.png\" alt=\"Improve Customer Retention\" width=\"550\" height=\"138\" srcset=\"https:\/\/www.walkme.com\/blog\/wp-content\/uploads\/sites\/2\/2017\/09\/Customer-retention_images-1.png 550w, https:\/\/www.walkme.com\/blog\/wp-content\/uploads\/sites\/2\/2017\/09\/Customer-retention_images-1.png?resize=300,75 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/p>\n<p>In the long run, customer retention and loyalty is more profitable than adding new clients. Current customers are more likely to increase spend with a company over time, according to <a href=\"http:\/\/www.bain.com\/Images\/BB_Prescription_cutting_costs.pdf\" target=\"_blank\" rel=\"noopener\">research<\/a> from Bain &amp; Company. The operating cost of servicing them declines, while the cost of acquiring new business is always high. Furthermore, loyal customers are more likely to promote your business and less likely to abandon you for a competitor with whom they are less familiar, according to the report.<\/p>\n\n<h2>Mistake No. 2: Underestimating the Importance of Onboarding Customers<\/h2>\n<p>Poor onboarding completely undermines a company\u2019s investment in your software and threatens customer retention and loyalty.<\/p>\n<p>Without effective <a href=\"https:\/\/www.walkme.com\/glossary\/customer-onboarding\/\" target=\"_blank\" rel=\"noopener\">customer onboarding<\/a>, the many advanced features and add-ons that differentiate your software from competitors will remain unused, meaning your customers are not reaping the value of their investment. As a result, they won&#8217;t feel compelled to keep paying for it and probably jump at the chance to adopt software that promises to fulfill their needs more easily.<\/p>\n<p>Fortunately, there is a simple remedy for these onboarding woes. With a Digital Adoption Platform (DAP), onboarding time and effort is significantly reduced. Not only will overall adoption rates for new users rise, but they will understand how to take advantage of a wider range of features within the platform. Customers will experience increased productivity and you will improve customer retention.<\/p>\n\n<h2>Mistake No. 3: Glossing Over Updates and New Features<\/h2>\n<p>Software providers must not only ensure their customers know how to take advantage of every capability the tool has to offer, but also ensure users remain abreast of updates and new features.<\/p>\n<p>With more technology living in the cloud, automatic updates that are meant to boost efficiency instead become a source of frustration. Consequently, these changes don\u2019t improve customer retention, they hurt it.<\/p>\n<p>These headaches could be enough to drive important customers away. Executives are bombarded on a daily basis with offers for shiny new toys that promise to deliver new value and skyrocket productivity. You\u2019ve already done the work to acquire your clients \u2014 don\u2019t let them get seduced by competitors.<\/p>\n<p>Improve customer retention and keep your customers enamored with your software by making learning continuous and seamless. With WalkMe\u2019s DAP, users get on-screen, contextual help in real time with a single click. This makes learning and navigating new features a breeze. Software updates shouldn\u2019t interrupt workflow, they should enhance it.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-2776 size-full\" title=\"Improve Customer Retention\" src=\"https:\/\/www.walkme.com\/blog\/wp-content\/uploads\/sites\/2\/2017\/09\/Customer-retention_images.png\" alt=\"Improve Customer Retention\" width=\"550\" height=\"138\" srcset=\"https:\/\/www.walkme.com\/blog\/wp-content\/uploads\/sites\/2\/2017\/09\/Customer-retention_images.png 550w, https:\/\/www.walkme.com\/blog\/wp-content\/uploads\/sites\/2\/2017\/09\/Customer-retention_images.png?resize=300,75 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/p>\n\n<h2>Mistake No. 4: Not Using Available Technology to Improve the Customer Experience<\/h2>\n<p>More than 8 in 10 executives of B2B companies rank the customer experience as a top priority, according to a 2015 <a href=\"https:\/\/www.accenture.com\/t20161216T021856Z__w__\/us-en\/_acnmedia\/PDF-27\/Accenture-Strategy-B2B-Customer-Experience-2015-Research.pdf\" target=\"_blank\" rel=\"noopener\">survey<\/a> from Accenture. With more resources being devoted to providing a better customer experience, it stands to reason that those responsible for assisting customers should have the tools to succeed.<\/p>\n<p>Unfortunately, the myriad of technology implemented to support customer service managers are often complex and disconnected. When using multiple CSM platforms and support tools is too challenging, the goal for which they were implemented to achieve will remain unfulfilled.<\/p>\n<p>With DAP, an added layer that provides real-time navigation prompts and contextual support, your CSMs will be able to master numerous tools and switch between them seamlessly. Importantly, they will be empowered to provide your customers with the best possible experience.<\/p>\n<p style=\"text-align: center;\"><strong><a href=\"https:\/\/www.walkme.com\/pages\/cx-corporate-5-optimize-customer-experience\/?eco=cx&amp;adin=improve-customer-retention-ll01&amp;land=cx-corporate-5-optimize-customer-experience&amp;pitch=Customer-Care\" target=\"_blank\" rel=\"noopener\"><em>You can optimize the customer experience \u2014 instantly. Discover how today.<\/em><\/a><\/strong><\/p>\n\n<h2>Mistake No. 5: Failing to Learn From Churn<\/h2>\n<p>Customers might leave you for any number of reasons. If you\u2019re unable to retain a client, make sure you ask them why. Soliciting candid and detailed feedback is critical for learning how to improve customer retention. But making tangible changes based on this knowledge is even more important.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-2777 size-full\" title=\"Improve Customer Retention\" src=\"https:\/\/www.walkme.com\/blog\/wp-content\/uploads\/sites\/2\/2017\/09\/Customer-retention_images-2.png\" alt=\"Improve Customer Retention\" width=\"550\" height=\"138\" srcset=\"https:\/\/www.walkme.com\/blog\/wp-content\/uploads\/sites\/2\/2017\/09\/Customer-retention_images-2.png 550w, https:\/\/www.walkme.com\/blog\/wp-content\/uploads\/sites\/2\/2017\/09\/Customer-retention_images-2.png?resize=300,75 300w\" sizes=\"auto, (max-width: 550px) 100vw, 550px\" \/><\/p>\n<p>Your SaaS platform could be cutting edge. But if you\u2019re seeing an exodus of customers, it\u2019s past time for an intervention. Perhaps your onboarding method is subpar. Or maybe your CSMs haven\u2019t quite mastered how to provide the best customer experience. Whatever the reason, diagnosing the underlying cause for churn shows you understand the critical importance of customer retention.<\/p>","protected":false},"excerpt":{"rendered":"Customer retention is one of the most important indicators of success for SaaS companies, but many organizations \u2014 even those<span class=\"moretag\">&#8230;<\/span>","protected":false},"author":246,"featured_media":2773,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"mobile_image_id":0,"tablet_image_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[88,89],"tags":[114,189],"class_list":["post-2772","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-customer-experience","category-digital-transformation","tag-customer-retention","tag-wmb-cx"],"acf":{"__coauthors":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How to Avoid Churn and Improve Customer Retention - WalkMe Blog<\/title>\n<meta name=\"description\" content=\"Customer loyalty is critical to the success of any company. 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