With the current state of the economy, times have proven to be tough for everyone, including businesses. To survive with everything happening in the world and stand out in a competitive marketplace, it’s more important than ever to focus on B2B account retention.
While this may seem like a no-brainer, many businesses get too caught up in trying to find and convert new customers that they wind up neglecting the ones they already have.
So, if you want to ensure your company thrives and generates plenty of sales, now is the time to focus on B2B account retention. Doing so will ensure your customers stick around for a long time to come.
What is B2B Account Retention, Exactly?
In business, it’s always great to attract new customers. It’s a sign that your audience is growing and expanding to reach even more people than before. But where many businesses fall short is that they focus too much on generating new leads and fail to prioritize connecting with the customers they’ve already obtained in the past. As a result, those customers might not feel valued and could decide to move on to a competing company for any future purchases.
To prevent this from happening, you need to focus on B2B account retention. What this means is that you’re continuing to engage with and satisfy the needs of your customers long after they’ve made their initial purchase. Doing this keeps you top of mind, while also keeping them happy. And it’s those happy customers that will come back to make repeat purchases and will rave about you to their friends, family, and colleagues.
In today’s changing economic atmosphere, many might argue that focusing on B2B account retention is more important than landing new customers. That’s because, with inflation, many customers are hesitant to make purchasing decisions right now. So, if you focus on re-engaging with past customers who were already satisfied with their purchase, they might be more inclined to buy again. Luckily, you can do this fairly easily by boosting your website retention rate.
Why B2B Account Retention is More Important Now Than Ever
Your B2B retention rate allows you to see just how successful your company is at satisfying its existing customers and turning them into repeat buyers. This is a great sign for the longevity of your company. But why exactly is it so important given the current economic state? Here are a few reasons why you need to start focusing on B2B account retention right away:
1. It’s More Cost-Effective to Retain Existing Customers
Did you know that it’s six to seven times more expensive to acquire a new customer than it is to retain an existing customer within your business? It’s true. And that’s because it takes a lot of time and resources to get your business in front of an entirely new audience, move them along your sales funnel, and ultimately encourage them to make a purchase.
When it comes to existing customers, they already know what it’s like to use your product or service. If they’ve had a good experience the first time around, they’ll be more inclined to come back. The best part is that you don’t have to start at the beginning to build a relationship with them. Instead, you simply need to focus on maintaining the relationship you do have.
In return, you’ll see your B2B retention rate increase. And a mere 5% increase in customer retention could boost your company’s revenue by 25-95%. Not only is it going to save you money to focus on your customer loyalty and retention strategy, but it can generate more money in the long run.
2. It’s Easier to Retain Customers Than to Acquire New Ones
As if the financial aspect wasn’t enticing enough, another reason B2B account retention is worthwhile is that it’s easier to turn someone into a repeat buyer than it is to acquire new buyers. As mentioned above, when someone is just discovering your business, it’s going to take them some time to move through the sales funnel.
Before making a purchase, they’ll need to build the Know, Like, and Trust Factor with your company. To do this, it’s important to present them with content that’s catered to their needs. They’ll need to see you as an expert and an authority in your field. And they’ll probably want to see some social proof so they know you’ve been able to deliver results for previous customers.
On the other hand, someone who has already purchased from you has been through this stage. They don’t necessarily need to go through your sales funnel again. All they have to do is reach out and connect with you and purchase for a second time.
3. You’ll Get Free Word-of-Mouth Advertising
There are tons of ways you can spread the word about your business. For instance, you can create blog content that’s been optimized for search engines. You can invest time and money into social media marketing. However, nothing is quite as satisfying as word-of-mouth advertising. It feels great when customers rave about you to others because you know you’ve served them well. Plus, it speaks highly of your company when someone recommends you because it means they believe in your services.
When you satisfy the needs of your customers and prioritize B2B account retention, you’ll keep them coming back for more. And in turn, they’ll potentially become free advocates for your company. After all, people love to rave about the great experiences they’ve had with B2Bs. Even more important than that, 92% of people trust recommendations they’ve received from friends and family over any other type of marketing.
4. Past Customers Are More Inclined to Pay Premium Prices
With the current state of the economy, all anyone seems to be talking about is inflation. As a result, it’s led many people to be a bit more cautious with their money. Instead of spending frivolously, some are choosing to cut back on their expenses and even put off making bigger, more expensive purchases. It’s not surprising many are doing this with the costs of everyday items skyrocketing.
But what does that mean for B2B companies? It means many are making the move to raise their prices. Since they’re seeing fewer sales, charging premium prices helps to keep profit margins relatively the same. After all, many companies can’t afford to see a dip in profit since they need to make money to keep the doors open and pay employees. Luckily, past customers are often more inclined to pay those higher prices since they know you’re dependable and trustworthy.
Besides that, many consumers will associate a higher price with a higher quality product or service. Everyone wants to get their money’s worth, now more than ever. So, if you’re needing to raise the prices on your company’s offerings, it’s likely your past customers will be more inclined to buy.
Improve B2B Account Retention With Website Personalization
Wouldn’t you love to offer an unforgettable experience that’s tailor-made to your consumer? Not only does this make them feel like you truly understand them and their needs, but it’s perfect for encouraging B2B account retention since past customers will want to come back for more.
Schedule a personal demo to learn more about how Hushly can help you create a personalized experience.