5 Tips For Retaining Customers With Subscription-Based Water Delivery Software
Acquiring a new customer is five to twenty-five times more expensive than retaining existing customers. Do you need help to keep your customers? Do you want to learn the strategies to maintain them? Then you are at the right place.
This blog will cover all aspects of water delivery software that help you retain your customers. This blog covers:
Table of Contents
What is Customer Retention?
Customer retention is the ability of your business to change your customers to repeat customers and prevent them from shifting to your competitors. Customers are the lifeline of any business, and your customer retention rates indicate the quality of the service or products you offer and their popularity among your customers.
Customer retention is different from customer acquisition. Customer acquisition refers to acquiring or onboarding new customers, whereas customer retention refers to keeping the customers and compelling them to use your service again. This can only be possible with a great customer experience.
Why is Customer Retention Important?
Customer retention is an important aspect that contributes to the long-term success of a business. Reasons to retain your customers:
- Affordable: Retaining customers is more affordable than acquiring new ones. Acquiring new customers is 5 to 25 times more costly than retaining existing ones.
- ROI: Increasing the customer retention rate can increase the return on investment by 25% to 95%.
- Upgrade revenue: Long-term customers are likely to upgrade their services, adding to the revenue.
- Referrals: A satisfied and happy customer becomes an advocate for your business and talks about it in their friend or family circle. This gives you free endorsement for your business and enables you to build a loyal customer base, reducing your marketing and customer acquisition costs.
Key Customer Retention Metrics
You can measure your customer retention using certain key performance indicators. These indicators can help you build strategies and plans to improve customer retention rates. These key performance indicators are:
Customer Retention Rates
It is the percentage of customers who have remained loyal to your products and services in a given time. You can calculate the customer retention rates:
- Number of customers at the start of a given period (S)
- Number of customers left at the end of a given period (E)
- New customers acquired during that period (N)
Formula to calculate the customer retention rates:
((E-N)/ S) * 100 = X
Customer Churn Rates
The customer churn rate, or CRR, is the percentage of customers who stopped your service or product in a given period. A higher customer churn rate indicates an issue with your service or product.
- The number of customers lost (L)
- Total number of customers at the start of a given period (S)
The formula for calculating the customer churn rate (C) for some time is:
C = L/S * 100
Customer Lifetime Value
Customer lifetime value, or CLV, is the total revenue generated or expected from a customer in their lifetime. Understanding your customer’s lifetime value helps you discover your loyal customers.
Note*: Customer retention, churn rates, and lifetime value are important in businesses like subscription-based water delivery services, where repeated business is highly expected.
What is Subscription-Based Water Delivery Software?
Subscription-based water delivery software is cloud-based, scheduled delivery management software that automates and streamlines your bottled water delivery operations. This delivery software consists of six major modules that contribute to improving customer experience and satisfaction, ultimately retaining your customers. These modules include order management, payment management, inventory management, delivery management, and analytics and reporting.
The delivery software consists of three components:
- Admin Panel
- Customer App
- Driver App
These three components work together and are in sync to provide real-time order status updates and real-time tracking of orders, customers, inventory, drivers, and payments.
5 Tips to Retain Customers with Water Delivery Software
The water delivery software offers various features that can help you retain your customers. The software automates business operations and allows you to implement certain strategies to help you retain your customers. Here are the top 5 tips you can implement using water delivery software:
Customer Grouping
The delivery software enables you to group customers based on various parameters, like revenue generated or lifetime value. You can offer them credit limits based on different preferred parameters. Offering special prices increases customer loyalty and retention rates. You can also offer discounted prices group-wise to provide a personalized buying experience to enhance their journey and loyalty.
Custom Notifications
You can send customized notifications and offer your customers special discounts, coupons, or cashback. Such monetary offers improve customer reliability with your brand. The notifications enable direct customer interactions, enhancing customer engagement with your brand and improving customer satisfaction and retention rates.
Feedback
The system enables customers to submit product or service feedback, which can be fetched from the admin panel. Working on the customer’s feedback and making changes accordingly gives your customers a sense of being heard. And anyone who feels heard is always satisfied and remains loyal to the brand.
Route Optimization
The system integrates route optimization software that creates the shortest delivery route, ensuring timely and accurate deliveries. Delivering timely orders enhances service reliability and improves customer satisfaction rates.
Self-Service Portal
A self-service portal is a water delivery app that enables customers to place and manage orders (cancel, edit, pause, and resume subscriptions). The app enables them to manage payments and deliveries. The application provides complete control to your customers and enables them to manage their profiles and multiple delivery addresses.
Benefits of Implementing Water Delivery Software for Customer Retention
Water delivery software eases the implementation of strategies for customer retention and brings quick and long-term impact. The benefits of retaining customers are:
Lower Marketing and Customer Acquisition Costs
Attracting new customers can be expensive, costing 5 to 25% more than retaining customers. Considering the cost of acquiring new customers, marketing costs are much higher than retaining existing customers. Attracting new customers includes paid advertising, marketing, and offering discounts or incentives, which can be expensive. Focusing on retaining customers rather than acquiring new ones can help you save on marketing costs and acquisition rates.
Improves Sales Forecasting
Because the number of loyal customers is consistent and does not fluctuate frequently, it helps you calculate sales. You can focus more on strategic growth than customer churn rates and accurately know your expected revenue.
Word-of-Mouth Referrals
Satisfied and happy customers are your advocates, who refer your brand to their close ones and suggest they use it. This kind of marketing comes under word-of-mouth marketing, where you do not directly promote your brand, but your customers do. The customers acquired through word of mouth are mostly reliable customers.
Increased Revenue
Extended customer relationships contribute to upgrading services and adding to revenue, extending the monthly recurring revenue (MRR). 80% of revenue is generated from repeat sales, which means that high retention rates also increase the revenue.
Increased Customer Lifetime Value
Customer lifetime value is the revenue generated from a customer over a predefined time. Satisfied and loyal customers tend to upgrade their services, increasing the customer’s lifetime value. Upselling or cross-selling are major drivers to increasing customer lifetime value. Consistent revenue is an indicator of a sustainable business.
How Can TrakOp Help You Retain Your Customers?
TrakOp is a subscription-based scheduled delivery management software that offers features like self-service portals, route optimization, customer grouping, feedback, and custom notifications. These features can help you retain your customers, lower your marketing and customer acquisition costs, improve sales forecasting and word-of-mouth referrals, and increase revenue and customer lifetime value. If you are looking to improve your customer retention rates, book a business consultation and see how our software solution can help your brand.
Hope You Enjoyed the Read!
He loves to explore. His passion for helping delivery industries in all aspects flows through in the vision he has. In addition to providing smart solution to make delivery process flawless, Ravi also likes to write sometimes to make it easier for people from business industry looking for digital solutions.
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