MarketStar Blog | Articles (8)

Key Takeaways

• AdTech allows advertisers to plan, manage, and optimize their campaigns strategically. 

• AdTech includes various tools like DSPs, SSPs, ATD, ad servers, and ad networks to help advertisers serve relevant ads to relevant audiences.

• AdTech streamlines and enhances digital advertising efforts, and the technology is only growing more sophisticated.

• AdTech enables businesses to reach audiences quickly, increase measurability, and run effective ad campaigns.

The AdTech market is full of opportunities for generating leads.

But with so many options and so much noise in the market, it can be challenging to know where to start. This guide will help you find the best leads for your business by considering your specific needs and budget.

When it comes to finding leads, AdTech can be a great option. Using data and technology, you can identify potential customers and target them with personalized messages.

In this guide, we’ll cover the following: 

• What is AdTech?

• The AdTech ecosystem

• Benefits of AdTech 

• Implementing AdTech into your lead generation strategy

• Get started with AdTech

By the end of this guide, you’ll know everything you need to get started with AdTech and find better leads.

What is AdTech?

Advertising Technology, a.k.a. AdTech, refers to the software and tools used to buy, sell, and deliver digital advertising. AdTech includes everything from ad servers and networks to demand-side and data management platforms.

AdTech is rapidly evolving and has revolutionized the advertising industry. It has made it easier to buy and sell ads and track and measure advertising campaigns’ performance.  

AdTech has also made it possible to target ads to specific audiences and deliver them in real-time.

If you’re involved in digital advertising, you need to understand AdTech – it is the backbone of advertising.

AdTech is an exciting and dynamic industry, wherein new AdTech companies are constantly emerging every day, and existing companies are continually innovating and improving their products.

The AdTech Ecosystem

 The AdTech ecosystem is an ever-changing landscape. 

With so many players and technologies, it can take time to keep up with the latest trends. However, understanding the AdTech ecosystem is essential for anyone who wants to stay ahead of the curve in digital advertising.

Here are some major players and the technologies used to power the AdTech ecosystem. 

• Ad Server: An ad server is a program that stores and serves website advertisements.

  Advertising networks use ad servers to track statistics, deliver ads, and act as a middleman between advertisers and website publishers. Ad servers can serve websites, emails, and mobile devices.

• Ad Exchange: Ad exchange is a marketplace where advertisers can buy and sell advertising space.

  Ad exchanges are used to buy and sell ads on websites, apps, and other platforms. They usually work on real-time bidding (RTB), meaning you can bid on ad space in real time. This allows you to target specific audiences, create personalized customer experiences, and optimize your campaigns for maximum impact.

• Agency Trading Desk (ATD): ATDs allow you to trade digital advertising space in real-time.  ATDs use programmatic technology to automate the ad-buying process, making it more efficient and effective.
  
  Using an ATD includes improved campaign performance, transparency, and control. They also provide you with access to valuable data and insights that can be used to inform future campaigns.

• Demand Side Platforms (DSP): DSPs are used by ad agencies and marketers to purchase ad space on digital platforms, including websites, apps, and social media platforms.
  
  DSPs allow advertisers to bid on ad space in real time, which gives them a significant advantage over traditional ad-buying methods. With DSPs, advertisers can adjust their bids according to market changes, allowing them to get the best ROI.

• Supply Side Platforms (SSP): An SSP is a type of software that helps websites and other digital publishers improve the efficiency of their ad operations. By automating many of the manual tasks associated with ad management, SSP can help publishers increase their revenues and improve the overall quality of their ad Inventory.

• Data Management Platform (DMP): A DMP is a software platform that helps organizations collect, process, and manage data.
  
  DMPs can track customer behavior, understand customer journeys, measure campaign performance, and more. They are an essential tool for any business that wants to make data-driven decisions.

The 3 Important Benefits of AdTech

AdTech can be used in a variety of ways to benefit your business.

It helps you to reach a wider audience, target your ads more effectively, track the results of your ad campaigns, and optimize them for better results. 

AdTech can also help you save money on your advertising budget, as you can more accurately target your ads to those most likely interested in your product or service.

Overall, AdTech can be a valuable tool for businesses of all sizes. If you are thinking of using AdTech to boost your business, consider the benefits carefully and speak to an expert to ensure that you use it in the most effective way possible.

There are many benefits to using AdTech; some of the most notable ones include:

• Targeted Advertising: AdTech can help businesses reach a larger audience with their ads by targeting specific demographics, interests, and even locations. The ad placement can have perfect timing and context, helping marketers save time and resources. 

• Better Performance Tracking: You need the correct information to make informed decisions about campaigns. AdTech helps report and analyze data like impressions, conversions, click-through rates, and more in real time. This information can then be used to improve future ad campaigns.

• Increased ROI: An ad campaign that isn’t monitored may cut into your campaign’s returns – using advertising technology can help automate this process. You can leverage AdTech to improve your bids, eliminate time-consuming work, increase the return on investment (ROI), and generate more revenue.

Implementing AdTech into Your Lead Generation Strategy

AdTech is a powerful tool for boosting your lead-generation efforts. It enables your business to target potential customers with ads relevant to their interests.

By harnessing the power of data and technology, you can create targeted ads that reach the right people at the right time.

AdTech enables you to understand your target audience better, what they’re interested in, and when they’re most likely to convert. By using this information, you can create ads that are more likely to reach leads who are ready to buy.

By targeting ads to specific groups of people, you can increase the chances that your potential customers will click on them and convert them into leads.

AdTech can be a great way to boost your business, but it’s important to use it wisely. When using AdTech to generate leads, there are a few things to remember:

• Make sure your ads are targeted to the right audience. 

• Provide a clear and easy “call to action” for potential customers to get in touch with you. 

• Follow up with leads promptly to convert them into customers.

Get Started with AdTech

This article covered what AdTech is and the essentials of AdTech.

There are a few basics that you should know before getting started with AdTech. Our experts can help you learn them, from choosing the right platform to understanding the jargon like ad buying, ad targeting, ad fraud, and more. 

Get in touch with us today to make the most of your ad spend, and you’ll be on your way to generating more leads and closing more sales.

Churn is inevitable in every customer-centric business – be it a darling of Silicon Valley or a daring startup in a small town. Churn usually refers to the exit of customers in a given period. It can also refer to the loss of business from an existing customer. What matters is how the company identifies and addresses it to minimize the adverse impact.

Key Takeaways: 

• Dropping dead leads and prioritizing high-value and sales-ready ones can help you gain more efficiency 

• The more control you have over your sales pipeline, the better your revenue generation 

• Combining your sales and marketing teams can pave the way for your business’s growth 

• To increase sales, provide more relevant content to your product/service and business 

• Identify and cross out possible bottlenecks in your pipeline to keep your potential customers moving through the sales pipeline smoothly 

Are your sales declining or not growing as you expected them to? The issue could be in your sales pipeline. 

Your sales pipeline is the backbone of your overall sales process and is vital to your business’s success. It delivers a stable feed of qualified leads and enables your sales team to convert those leads into valuable customers.  

However, if you’re unsure about how your pipeline is built or are looking for the best practices to build your sales pipeline – don’t worry; we’ve got you covered! 

Before we get moving, you must be clear on understanding what a sales pipeline is.  

“A sales pipeline is a visual way of tracking a potential client’s status in the sales process. It is a set of actions taken by salespeople to convert a lead/prospect into a customer”. 

According to Harvard Business Review, “there was an 18% difference in revenue growth between companies that defined a formal sales process and companies that didn’t. Businesses that adhered to best pipeline practices saw 28% higher revenue growth.” 

It is imperative that your company, B2B in particular, has a healthy sales pipeline as it enables you to: 

• Improve the entire sales process 

• Predict your business results 

• Analyze the best sales strategies for your business 

• Evaluate your company’s progress 

• Close more deals 

6 Best Practices for Building a Powerful Sales Pipeline 

We’ve listed below six best practices to help you transform the way you manage your sales pipeline. These tips can help improve your sales process and generate more revenue. Let’s explore. 

1. Define Your Pipeline Stages 

The first step to follow in managing your sales pipeline is to break your pipeline into stages and then define them. Each stage needs to be clearly defined with actionable steps for the sales reps to take.

If you haven’t created a sales pipeline yet, our experts can help you create one.

Map your customer journey by understanding how a lead moves and makes its way through the sales process.

Also, understand what your sales team is already doing. Modify the existing approach if needed and build a new pipeline for better management. 

Related Read: 4 Must Have Tools to Manage Your Sales Pipeline Efficiently 

2. Put Your Customers First 

“Never put the cart before the horse while building your sales pipeline.”

One of the biggest mistakes most sales managers and teams make today is they don’t put their customers’ thought processes first. Instead, they just build their pipeline around arbitrary decisions.

But your product/service exists only because of your customers. So, build a customer-centric sales pipeline that runs alongside your buyer’s journey.

We recommend you break your buyer’s journey into the following stages:

• Recognize the problem 

• Realize the economic impact 

• Specify decision standards 

• Check alternatives

• Select the vendor 

Each of these five stages require a specific action to be taken by your sales reps.

For instance, let’s say your potential customer has reached the fourth stage (checking for alternate sellers/vendors). They might be weighing up your product/service against your competitors. This is the right time for your sales team to quickly jump in and send a brief comparison video or a similar asset to them, which can help them sway back to your side.

Remember, these stages need to be flexible so they can be tweaked later per the customer journey.

3. Bridge the Gap Between Sales and Marketing 

Bridging the gap between sales and marketing may sound cliche or like an adage, and you just shrug it off. But, you might want to reconsider your thoughts as it is crucial for your sales team to be aligned with the marketing.

Yes, their main objective is to forward good and qualified leads. What if they don’t know what a good lead or SQL (Sales Qualified Lead) is? The very thought haunts you, right?

However, the good news is that it can be fixed by working closely with experts who can help you identify the problem, fix it, and overcome your lead generation challenges.

4. Identify & Focus on the Best Leads 

It takes about the same time to close each deal in every sales process. It is best practice to avoid getting distracted by leads that won’t move the needle.  

Instead, concentrate your time and efforts on high-value and sales-ready leads. View the activity of your leads, identify the most engaged ones, and focus on them.

It is equally important to drop a lead when you need to!

After spending weeks or even months nurturing a lead, letting it go can be hard. But, when they are not interested and can’t be pushed through to the next stage, it is better to drop them and focus on others.

Don’t waste your time trying to convince leads that simply aren’t interested. Identify dead leads quickly so you can concentrate on the following opportunities in the pipeline.

5. Review and Update Your Sales Pipeline 

Top sales companies know that a technique that works today may not work tomorrow. So, they review their sales process and strategies regularly to ensure things are on point for maximum efficiency. 

Every sales pipeline changes constantly – new leads come in, move from one stage to another, and finally, deals get closed. If you are not prudent, your pipeline can get helter-skelter and lead to lost deals. You must keep your details and information in your pipeline reviewed and updated for each process stage. 

Related Read: 5 Common Mistakes to Avoid in Sales Operations 

6. Deliver More Content 

Emails and phone calls are indeed the pillars of sales communication. However, people require more; in-depth information that can help them better understand your product/service and is helpful for their business. 

Create content that showcases your brand, product/service, and offerings. Send them to your prospects – this will enable your team to take your potential customers to the next stage. A study by Marketing Charts reports that only 27% of sales reps who talk to prospects collaborate with the marketing team on content creation. But, the sales and marketing teams need to work together to create content your potential customers want to consume.

Optimize Your Sales Pipeline Today 

Not heeding your sales pipeline can negatively impact your business growth.

The aforementioned six sales pipeline best practices can help you drive your sales process, focus on sales pipeline growth, gain better control over sales data, and eventually boost your profits.

You need the right sales pipeline management tools, technology, and expert guidance to achieve this, close more deals, and gain more revenue. 

Key Takeaways

The COVID-19 pandemic has forced B2B sales organizations to reinvent themselves at an unprecedented pace. While sales reps are in the relatively unchartered territory of remote selling, organizations must contend with providing training and coaching to the sales teams remotely. Virtual training methods have been steadily gaining ground as the preferred mode for imparting sales training even before the current crisis. The coronavirus pandemic has made this transition more urgent.

As you're coming to the end of Q4 and have more and more reports coming your way, a realization of what this year's numbers mean starts to sink in. Your team won't make it. And you don't know why. You hired promising salespeople; your marketing team seems to know what they're doing, and you know that what you sell hits the mark. You can't blame the economy; seeing how well your competitors are doing. It appears like your team is doing the best that they can. Then why are you thinking "why is my sales team not performing?" and "how do I fix this?"

Let's have a look at some potential problem areas and answer some questions to find out how you can turn your underperforming team around.

Key Takeaways: 

• If there is one SaaS metric you should monitor carefully, then it is your churn rate. The lower the percentage, the better 

• However, the churn rate does not give you the full picture and health of your business 

• To understand the impact of churn on your revenue, Net Retention Rate (NRR) and Gross Retention Rate (GRR) are more effective markers 

• Choosing between the two metrics can be tricky as the metric you employ can help determine the health of your business

Almost every profitable enterprise relies on its customer base to succeed. 

Customer success is, even more, a critical consideration for businesses that provide solutions through a SaaS model. 

Customer success is an important component of every department: marketing, sales, onboarding, support, hiring, or operations. The goal is to deliver value to the customers. 

Therefore, the question that arises is: How do you measure it? 

Few critical metrics for customer success provide valuable insights into the many factors that determine your customer’s success. These metrics help businesses understand and explain how and why a customer uses their solution, how many customers they are retaining, and the value of both retained customers and those lost to attrition. 

For many organizations, the answer to these questions lies in using several methods or metrics. At the same time, these metrics are not static and can keep changing through the customer life cycle. 

Why are Customer Success Metrics So Critical?

The metrics for customer success come into the picture because of customer churn. And less than ideal customer service is one of the most dominant reasons why customer churn occurs. 

According to one study, 65% of customers have switched to a different brand because of poor customer experience. So even if you have the most competitive product in the industry, a mediocre experience will lead you to lose customers. 

A crucial reason for reducing your churn rate is the reality of just focusing on new customer acquisitions.

While the success rate of selling to a new customer stands at a mere 5-20%, your success rate of selling to an existing customer is 60-70%! This is because your current customers are already happy using your product or service. They trust your business, which is so important if businesses want to remain relevant in the current competitive landscape. 

New customers, on the other hand, need to be convinced why they should spend money on your product. 

Existing customers will be the key to your business success. 

Consequently, you can significantly reduce churn if you know what your current customer base is experiencing and what you can do to alleviate some of their pain points. 

The 2 Key Metrics to Measure the Efficacy of Your Customer Success

Program: NRR & GRR

Broadly speaking, there are two metrics that can help you measure the amount of revenue you have retained or revenue that you did not lose to churn. 

These customer success metrics are – Net Retention Rate (NRR) and Gross Retention Rate (GRR). 

What is Net Retention Rate in SaaS? 

Net Retention Rate is a SaaS-based metric that helps businesses calculate the percentage of revenue they have retained from existing customers over a period of time.

This can be monthly or yearly and can include upgrades, downgrades, cross-sells, and cancellations.

In simple terms, your NRR helps you understand how many of your existing customers are actually staying loyal and extending their subscriptions.

NRR, also known as Net Dollar Retention, helps you understand whether the service you are providing has the quality of engaging new customers and meeting their needs. It’s a key metric that can help uphold a company’s financial performance and comes in handy when evaluating the quality of customer success.

Calculating Net Retention Rate 

You first add your Churn MRR and Expansion MRR and subtract them from Contraction MRR.

Further, subtract the result from starting MRR. Now, divide the result by starting MRR and then go on to multiply it by 100 to get your Net Retention Rate.

NRR = (Starting MRR – Contraction MRR – Churn MRR + Expansion MRR)/ Starting MRR x 100 

Here’s what this means: 

• MRR: Monthly Recurring Revenue or the amount of recurring revenue a company predicts to earn each month

• New MRR: Monthly Recurring Revenue from new customers

• Contraction MRR: These are your downgrades or lost MRR from existing customers 

• Churned MRR – These are your lost MRR from canceled customers 

• Expansion MRR- These are your upgrades or MRR from existing customers 

Improving Net Retention Rate 

To begin with, you can encourage your users to upgrade their trial accounts to paid accounts using modals.

A modal is a rectangular UI element that is commonly used in SaaS businesses to notify users of something important.

Modals are effective as they grab the customer’s attention as they normally take up most of the user interface. Contextual in-app messaging is another great way to help increase your NRR.

What is Gross Retention Rate in SaaS? 

Your Gross Retention Rate is the ability of your business to retain its existing customers.

When you retain your customers, you retain revenue. So, GRR is the percentage of customers that a business is able to retain at the existing price point.

Unlike NRR, your GRR does not take into account revenue earned from expansion, upsells, and cross-sells. But it does include any downgrades or cancellations of subscriptions. Your Gross Retention Rate simply tells you how happy your existing customers are. It is a stability indicator of any SaaS-based business model.

• Calculating Gross Retention Rate  

GRR is the rate of existing customers retained during a given period.

To calculate GRR, subtract your MRR at the beginning of the period from your downgraded MRR during the period.

Further, subtract your downgraded MRR with your contraction MRR. Now, divide the result by the MRR at the beginning of the period. GRR = (MRR start – Churn – Contraction) / MRR 

• Improving Gross Retention Rate 

An excellent method to boost your GRR is by giving your customers the opportunity to speak out about their concerns.

This can be done through surveys which will enable you to determine customer experience. The onboarding process plays a critical role here, ensure you have a solid onboarding process in place to retain more customers, and consequently revenue.

What Should You Focus On – NRR or GRR? 

The debate over whether to pick NRR or GRR is tricky.

Net Retention Rate might look like the better alternative as it takes into account two revenue streams – upsells and renewals.

However, Gross Retention Rate has a small advantage over NRR in the fact that it measures the long-term health of any SaaS business. Keep in mind the below tips when deciding: 

• NRR is a good metric for customer success when you are considering growth. It’s what you need to focus on finding the perfect product-market fit to attain a high GRR. A high GRR is only possible when your customers find your product useful and continue their business with you. 

• Remember that when it comes to funding opportunities, your prospective investors will closely scrutinize your GRR. Between two businesses with high NRR, investors are more likely to place their bets on the business that has a higher GRR. 

• NRR and MRR go hand-in-hand. So as you continue to chase growth and scale new heights, ensure that you are seeking a better market fit for your product. 

• Regardless of whether NRR or GRR is the priority, track both metrics carefully. Make use of a holistic subscription billing solution to capture insights from the payment process for strategic decision-making. Such solutions can help you gather relevant data about your business’s expansion, contraction, and churned revenue. 

• A good way of determining whether you are on the right path with your customer success metric is to determine the quality of NRR and GRR. While the standard benchmark varies across sectors, the closer your GRR is to 100%, the better the health of your company. Similarly, if your NRR is anywhere above 100%, your business is growing rapidly.

Wrapping Up 

Retaining existing customers should be at the top of the to-do list of any SaaS company.

GRR and NRR are not just calculations to measure dollar value. These metrics of customer success are crucial as they show you your customer’s journey and their success with your product/service.

Optimizing your NRR and GRR makes a world of difference when you are going for funding. To give your company the best chance of securing success, such customer success metrics should be explored and improved upon.

Looking to make customers your best growth engine? Reach out to us. 

Key Insights 

As the future grows digital, the smartphone is increasingly becoming the device of choice.

Key Takeaways:

• To gain loyal and long-term customers, you need to design a journey map that provides a superb experience

• Providing an incredible journey can turn someone who was casually browsing your website into an advocate who offers valuable referrals

• Journey mapping via pipeline management enables your customers to experience what it’s like to interact with your company

• Pipeline velocity refers to the speed with which leads move through the sales pipeline

Knowing what’s on your customer’s mind can be tricky and challenging. When you think you’ve accounted for their needs, their requirements change, and new buying trends emerge.

Ever wondered why a customer spends hours on your website researching your product/service to close the tab? Why does it take so many steps to get from point A to point B when it should ideally take just one?

Well, the problem could be in your customer journey mapping – you probably don’t have a clear understanding of your prospect’s journey to purchasing your product/service.

What is Prospect Journey Mapping?

Customer journey mapping or prospect journey mapping is a visual representation of how potential customers perceive your brand and how they interact with your product/service. It helps them gain insight into the challenges they’re facing.

The journey mapping aims to understand the needs and resolve pain points at all touchpoints (an instance where your prospect can form an opinion of your company) across the customer lifecycle.

How Prospect Journey Mapping Helps Drive Pipeline Velocity?

Prospect journey mapping enables you to get in your customers’ shoes and experience what it feels like to engage with your brand.

It helps you understand the good and the bad your brand offers, while the insights you gain help personalize the customer experience.

Before we explore the benefits of customer journey mapping and how it helps drive pipeline velocity, let’s find out what pipeline velocity is. 

What is Pipeline Velocity?

Pipeline velocity is the speed at which qualified leads move through a sales pipeline and eventually become customers.

The Benefits:

• Journey mapping helps you understand the role of different touchpoints and see how all customer interactions influence each other.

• By mapping out the prospect journey, you can understand what is interesting to your customers about your brand and what is turning them away. 

• It helps identify roadblocks to reduce customer pain points and improve user experience.

• Mapping out the customer’s journey helps you understand the channels they visit and what they’re trying to do at each touchpoint.

• Journey mapping helps you improve your customer retention rate. According to American Express, 33% of customers switch brands after just one poor experience.

Components in a Prospect Journey Map

A prospect journey map compiles your customer’s experience with your brand and combines the information into a map.

By understanding this relationship between your customers and your brand, you can build your touchpoints for the most effective journey mapping process.

The Purchase Process: This element defines the path/stages you intend for your customers to take to reach a specific goal. Using this path, you can start listing your stages in the right order.

Customer Actions: This component details what your potential customers do at each stage of the purchase process and explores the different ways they might reach their goals.

Adding Emotions: Your customers are looking for solutions to solve a problem. Adding a range of emotions to the journey map can help improve their opinion about your brand and turn them into brand advocates.

Pain Points: Adding pain points to the journey map helps identify the exact stage where your customers are facing issues and work out solutions.

How to Create a Prospect Journey Map

Before you start creating the journey map, you need to ask a few questions yourself – Why are you creating a map in the first place? What experience will it offer? Who is it about?

Based on these questions, you may want to create a buyer persona.

The next step is to interview prospects for direct feedback. A few good questions are:

• How did you hear about us?

• What attracted you to our website?

• On a scale of 1 to 5, how easy was it for you to navigate our website?

Based on the feedback and research, find out where your customers can interact with you on your website; list all the touchpoints your prospects are and should be using.

Determine all the elements your journey map needs to include and identify your resources and the ones you need.

Once you have designed your map, take the customer journey yourself first – this ensures that you are providing a valuable experience.

Finally, you can make the appropriate changes to your map to achieve goals.

5 Best Practices for Customer Journey Mapping

• Set a clear goal for the journey map to improve the customer buying experience.

• Turn customer pain points into business terms that your customer success team can understand and act upon.

• Create customer journey maps for different buyer personas based on demographics and psychographic.

• Update the journey map every time your product/service offers changes. Even a small tweak, like removing an additional field in the form, can significantly impact your customer journey.

• Make the prospect journey map accessible to cross-functional teams, as they are not effective in a silo.

Delight your Customers at Every Stage

Building an effective prospect journey map can help your brand create strong relationships with them. Once you understand their experience with your business, you can provide great delight at every stage of their journey.

Whether you’re optimizing your existing customer journey or exploring a new business opportunity to serve their unrecognized needs, start mapping the future of customer success in your business with the help of experts.

Bonus Takeaway:

Mapping customer journeys can be difficult for the marketing team, especially if they don’t know how and where to start.

So, here’s a handy worksheet designed to help savvy marketers chart their customers’ buying journeys to enhance their overall buying experience.

Print it out, pin it on your desk, and share it with other departments to ensure that everyone is consistently working towards attaining your customer experience vision.

Key Takeaways

• Brands must implement a seamless buying experience to make their customers come back, even during an economic crisis

• Repeat purchases are the ideal way to keep your business healthy and running during an economic downturn 

• Customers who are happy with your product/services tend to refer their friends to your brand

• Retaining your existing customers will help you grow your business amidst the challenges other companies are experiencing

Economic downturns or recessions can significantly impact customer behavior and your organization's approach to retaining customers.

As a CS leader, you must keep your team productive, motivated, and efficient during challenging economic times to retain your customers.

Customer success has never been more vital than it is right now, but instead of concentrating on KPIs and analytics, it’s crucial to pay attention to the customer.

By focusing on customer outcomes, an organization's current goal should be to make their customers’ lives easier while they use the product or service. Hopefully, the customer will benefit from this and continue doing business with you through challenging times.

This article will discuss why customer retention should become your number one focus and how to retain customers in an economic downturn.

The 5 Effective Strategies for Fostering a Loyal Customer Base

Even when things are going well with the global economy, retaining customers is difficult and building a loyal customer base is an ongoing effort. Making client retention marketing a priority requires hard work, even in the best times. 

However, when a recession occurs, things become even more difficult. 

People make fewer purchases, spend less, and forget some of their preferred brands to conserve money. You might think, “How can I hope to retain my customers in the current climate?” 

Fortunately, many strategies are still available to help create a solid consumer base, even during a downturn. A few of them are presented below. 

1. Put Customer Experience First

According to PWC, only 49% of consumers believe that businesses offer good customer service options, while 73% think customer service experience pre-purchase is a crucial determinant of their purchase decision. 

This indicates that you can quickly establish a loyal customer base if you can set yourself apart from your rivals in terms of customer service. 

Providing a positive and personalized customer experience, especially during a recession, is everything when it comes to running a successful business. 

You must ensure that you provide quality products and services, deliver them on time, and respond quickly to customer inquiries and complaints. By doing so, you will be able to keep your customers happy and coming back for more.  

To ensure that you are providing the best possible customer experience, it is essential to strive for improvement constantly. This means continually evaluating your procedures and removing inefficiencies where necessary. And removing inefficiencies that are affecting the CSAT score, NPS, or LTV.  

It is also important to listen to your customers and consider their feedback. By doing all of this, you can be sure that you are providing the best possible customer experience and running a successful business.

2. Be Flexible 

Be flexible with your customers.  

If they can’t pay their bill on time, offer them a payment plan. If they’re unhappy with a purchase, offer them a refund or exchange. 

Being flexible with your customers shows that you’re willing to work with them to ensure they’re satisfied. This can help build long-term loyalty, and trust and boost sales from existing customers. 

Customers feel appreciated when companies are ready to look out for them in times of need. Offer discounts and incentives when possible. When people spend less money on goods and services, they start looking for ways to save money elsewhere. 

Offering discounts or incentives may result in increased sales at times when your company cannot afford to lose money from sales volume alone. 

3. Have a Community-Oriented Perspective

During times of global disruption, people seek a community to belong to and connect with.  

Start developing meaningful connections with your existing customers to strengthen the relationship. Once you build a customer community, it will continue working for your business, even when you are not trying hard.  

Building trusting relationships with your customers will cost you nothing, and the payoff is immeasurable. Make direct contact with your clients and express gratitude, making them feel they are being seen and heard.   

Creating a community around your company, however, can be tricky.  

You can use community-building platforms and social media to build the community and offer loyalty programs or referral discounts to grow your business. 

4. Be Compassionate

In the same way that individuals seek out the community during a turbulent time, they also seek a little compassion and recognition. This can be accomplished through personalization – personalizing your approach for each customer can make them feel valued. 

When done well, personalized customer service may increase retention, foster customer loyalty and trust, reduce churn rates, and support the maintenance of a solid client base. 

According to HubSpot, personalized CTAs outperform non-personalized CTAs by more than 200%, and most customers are more likely to continue with a business that provides a personalized experience. 

Valuing your clients is a successful business strategy, especially when they are concerned about their expenses. You do not want your customers to stop doing business with you because they feel you don’t care about them. 

5. Add Value to Your Product/Service

The easiest way to retain customers is by bringing value to your customers. Be proactive with the value propositions the business has to offer. 

You can add value to your business with a single offer, but adding value as part of a series is much more effective. Here are some examples: 

1) Add a bonus product or service at the same price point and let customers know about it. This can be a free report, video or guide, or even an additional product at the same price.

It helps create loyalty by giving customers something extra for free, showing that you’re willing to go above and beyond for them. 

2) Improve customer service by walking them through processes that may not have been explained well before (or at all!) so that people know what’s expected of them when using your product or service.  

This can be done in person or via email – just ensure that customers know what’s happening behind the scenes! 

3) You should also improve the quality and performance of your products/services to help retain loyal customers who may not expect much from you but appreciate quality when delivered consistently. 

To Summarize

Driving customer loyalty in a challenging economic climate is key to increasing your business growth, and convenience is the key to gaining trust and loyalty from your customers in these times.

The above-mentioned strategies can help you achieve what you want and unlock huge benefits during a recession.

Outsourcing certain functions, such as sales pipeline management or customer support, can also help your organization take better care of your customers and become a boon for cost-conscious companies.

Using outsourcing as an intelligent business strategy can improve retention and position the organization to meet the challenges imposed by a recession favorably.