Guest Post: 5 Effective Ways Technology Enhances Customer Retention

Looking at the dynamics of the contemporary business world, it is safe to say that the customer life cycle is becoming shorter and more complex with every coming day. Where businesses are trying to attract new customers, they are also focused on retaining their existing ones.  

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The major reason is that it is easier to convince your existing customers to make a purchase instead of convincing new ones. To validate, the probability of selling to an already existing customer is 60% -70%, whereas the probability of selling your product to a new customer is 5% - 20%. This is the main reason why customer retention is becoming one of the most essential needs of every business. 

However, thanks to technology for becoming the savior of businesses in almost every industry. Technology has not only assisted in enhancing the efficiency of business operations but has also assisted in enhancing the retention rate of customers. 

But now the question arises how exactly technology can enhance customer retention and benefit your business? 

That being the case, this blog will effectively highlight the top 5 exceptional ways in which technology can be used to enhance customer retention of your business.  So let us dive right into the blog without further ado. 

5 Manners in Which Technology Enhances Customer Retention

1. Offer Personalized Recommendations

Those days are far behind when personalization was just a trend, the popularity of this trend made it essential for businesses to offer personalized recommendations. Today people are so habitual in interacting with personalized content that they do not want to purchase from businesses that do not offer personalized suggestions or recommendations. Technology is the only reason why customers are nowadays becoming big fans of personalization.  In fact, as per statistics, 80% of shoppers claimed that they will only shop with brands that offer personalized experiences.

Artificial intelligence, one of the most popular trends of technology has made it easier for businesses to offer more personalized recommendations based on the preferences and needs of the customers. For example, AI-based CRM tools will assist businesses in gathering information and generating powerful insights based on the customers’ preferences. This will assist businesses in understanding the customers and they can offer a more personalized experience to their target audience. 

Along with this, personalization also assists in connecting with businesses on a personal level. This will contribute to positive experiences of customers with your brand and once your customers have experienced positive brand interaction, it will assist in retaining them. 

Hence, this way technology will effectively assist you in retaining your customers through personalized recommendations and suggestions. 

 2. Assists in Replying to Queries Instantly

Everybody is getting busier day by day and nobody likes to wait especially when it comes to customers getting their queries solved. In fact, according to the stats, 90% of customers rate an "immediate" response as essential or very important when they have a customer service question.

Hence, in order to retain them, it is essential to answer their queries as quickly as possible and technology has been the savior of businesses in this case as well.  

The introduction of chatbots has assisted businesses to quickly replying to their customers’ queries. Chatbots use the technology of the Natural Learning Process (NLU) which assists them in comprehending the queries and answering them based on the previously stored data. In fact, as per statistics, 80% of routine customer questions can be handled by chatbots.

Along with this, AI chatbots can also be available for your customers 24*7. So it does not matter whether your customers have a query at 3 am in the morning, this invention of technology will assist you in replying to customer queries instantly and at any point of the day. 

When customers get an instant response to their query, it contributes to their satisfaction and happiness which further encourages them to make more purchases. This way technology can retain your customers using chatbots and by instantly replying to their queries. 

In fact, average handling time (AHT) is a key metric of customer service and experience. To explain, average handling time is the summation of the total talk time, hold time and follow-up time involved in customer interactions. 

A higher value of AHT is a clear indication of ineffective customer service as customers are made to wait for long to get a response. On the contrary, a shorter duration of processing implies great efficiency in handling customer interactions and queries. 

With AI chatbots, you can reduce the average wait time and average handling time significantly to deliver better customer experiences. Remember, your customers love to get their queries and service requests answered at the earliest.

3. Turn Customers into Numbers

What could be better than turning your one-time visitor into a member who purchases from your business again and again?  Yes, this is possible because of technology. Using various technologies you can effectively create a loyalty program that can assist you in retaining the customers of your business. But firstly, to define, loyalty programs encourage your customers to make recurring purchases in return for exclusive deals, rewards and discounts. 

Moreover, multiple elements of technologies such as gamification, chatbots, and virtual and augmented reality are very appealing to the customers. And you can add all these fun elements to your loyalty program using various technologies. 

Furthermore, when customers get a chance to experience such a unique and engaging experience, it assists them in staying with a brand and making a repurchase from them.  To substantiate, 95% of loyalty program members want to engage with their brand’s program through new and emerging technologies.

Hence, creating a customer loyalty program will assist you in engaging your customers in an effective way which can result in their retention for a longer period of time. 

4. Predicts Future Trends 

As discussed above, AI can assist in extracting powerful insights from external and internal data based on customers’ preferences. However, these insights can also be used to conduct future predictive analyses. These kinds of predictive analyses can also be used to essentially predict on the bases of the preferences of customers regarding what future trends will incur in the market. 

For example, if you work in the women's clothing industry, based on your predictive analyses using technology, you will effectively be able to measure what type of clothes women will be inclined to buy in the future. 

Based on these trends, you can make more informed decisions about what to keep in stock and what you want to remove from your inventory. This will assist you in saving costs and from wasting the extra manufacturing units. 

Along with this, when you restock based on the future trends, you will be able to fulfill the demands of your customers in the future. This will assist in keeping your customers retained by preparing for the future in advance using technology. When you have insights into the future trends, it becomes easier to set measurable goals.

5. Builds Positive Brand Perception

We can all agree on the fact that a brand’s perception in the minds of customers is one of the crucial elements that define the success of every brand. The more positive perception your customers have towards your business, the more retained they will be in the future. Hence, it is really essential to build a positive reputation for your brand. 

That being the case, social media has proven itself one of the biggest platforms where brands can either make or break their reputation significantly in front of millions of people. Hence, you can use the technology and harness the power of social media to build a positive reputation for your brand. You can use various platforms such as Instagram, Facebook, Twitter, and LinkedIn to connect with your target audience and pitch them your products. Using engaging and interactive content, you can effectively encourage your customers to make a purchase from your brand. 

Moreover, when your target audience will interact with your brand on a regular basis through social media it will enhance their recall power of your brand. This will assist you in staying in touch with your customers and can also enhance the retention rate of your brand. 

Along with this, if you successfully emerge as a brand that uses the latest technologies like CRM tools and chatbots to keep its customers satisfied and happy. It will contribute to creating positive customer perception which can lead to high retention of customers alongside attracting new customers as well. 

Besides, technology facilitates innovation in personalized experiences, feedback collection, and digital reward systems that can be accessed through smartphones. In fact, many brands have dedicated apps both for iOS and Android, and with these apps, brands offer exciting and seamless experiences to their customers.

To encapsulate, the biggest advantage of your business can be when your customers are on your side. Hence, it is really essential for your business to retain your customers in order to sustain in the market for a long time. Moreover, through the above-given ways technology will assist you in retaining your customers effectively. 

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