Many organizations understand the importance of marketing and are willing to invest large amounts of time and money into outreach to introduce their product to a new customer base. In the process, organizations often neglect an enormous and practically guaranteed customer base- the ones they already have. Statistics reveal that an increase of just 5% in customer retention can boost profits by 25% to 95%. In fact, for many organizations, repeat customers represent a majority – approximately 65% of their business.
While it’s easy to neglect existing customers and feel secure in the assumption that since they already need and have used your organization’s product or services, they’ll keep coming back, this isn’t always the case. Similarly to building a marketing strategy to reach new customers, you need to have a strategic plan to retain your existing customers. To do so, you need to carefully examine your product and analyze your customers’ needs to ensure that your product continues to meet them fully.
What is Customer Retention Software?
Keeping up with your customers’ wants and needs can be stressful and demanding, so utilizing software that can simplify this process is a no-brainer. Customer retention software is any program you can use to collect customer data that you can then transform into actionable insights and changes to your product. Making changes based on customer feedback will encourage repeat customers by showing you are open to listening to their requests and adapting to meet their needs.
Customer retention software can also help minimize poor customer experience and identify bugs or other issues disrupting the user experience you offer. Various departments can use the insights gained from customer retention software to help improve many facets of the product or service you provide. There are various categories of customer retention software, each of which focuses on a different factor.
Types of Customer Retention Software
Customer retention software (CRS) can be divided into 4 categories:
- Customer relationship management (CRM) software
- Quality Assurance (QA) Software
- Customer Feedback Software
- Customer Loyalty Software
Top 10 Customer Retention Software Solutions
With so many categories and solutions on the market, it can be challenging to identify which one works best for you. We’ve narrowed down the list to the top ten solutions currently on the market, which include:
Customer relationship management (CRM) software
CRM software creates customer profiles that teams can use to track and manage customer interactions. The software has access to all the touchpoints used throughout the customer journey, and the details it gathers can be used to build a deeper understanding of the customers’ wants and needs. Although various departments can use CRM software and the information it collects, sales and marketing teams are CRMs’ primary users, as these platforms generally focus on lead tracking throughout the lead journey.
Zendesk is a CRM solution that serves as a helpdesk tool and online engagement platform. With features such as live chat, knowledge base tools, and forums, Zendesk allows your customers to share their wants, needs, and concerns. Zendesk offers two different platforms, one specializing in Sales and the other addressing customer services. Sales plans start at £15 a month, while the Customer Service plans start at £39 per month per user.
- Enables communication with customers across several platforms
- Includes the option for canned responses in over 40 languages
- Users report issues uploading and exporting data
- Difficulty receiving customer service
A CRM and marketing automation platform, Hubspot helps organizations attract visitors, convert leads, and retain existing customers by empowering organizations with the software they need to manage their sales, marketing, service, and operations efforts. The platform includes various features such as lead flows, kickback emails, forms, and more. Hubspot is relatively expensive, with prices starting at €41 a month for the simplest plan and rising rapidly in consequent plans, but the variety of features may make Hubspot worth the price.
- Easy to use, extremely user-friendly
- Wide variety of features
- It doesn’t integrate with Microsoft ads, making ad performance tracking difficult
- Landing page templates can be challenging to configure
- High price point
Quality Assurance (QA) Software
QA software offers users real-time feedback on the performance of their support agents, giving your agents the encouragement they need to provide customers with a quality support experience at all times. Advanced QA software also uses metrics to implement various features such as coaching dashboards, screen capture, scorecards, and performance reports, allowing you to enhance your user experience.
Userpilot is a tried and tested quality assurance software solution that has worked with many high-profile companies, including Adobe. The software includes various easy-to-use tools that can help track different areas of customer service, allowing users to determine the quality of their services and receive genuine customer feedback. Pricing begins at $249 per month and includes features such as tracking, user reports, and localization for up to five languages.
- The system accepts custom data
- It doesn’t require coding knowledge
- There is a slight learning curve
- Can be prone to glitches and lagging during high-loading times
Tidio is a quality assurance software designed to help companies enhance the quality of their customer service. The software provides chatbot and live chat tools, allowing organizations to build a rapport with customers while gathering data such as who visits the company site and when and why they leave. It also includes a variety of templates that can help automate customer interactions and sends website visitors a thank you message when they exit the site. Pricing is flexible, and the solution offers a free version. Paid plans start at a reasonable price of $49 per month.
- Excellent customer support
- Reasonable and flexible pricing
- Limited to a chatbot and on-site features
- Limited export capability
Customer Feedback Software
Customer feedback software collects feedback from various sources and organizes it in a clear and easy-to-visualize way on a single platform. Observing customer feedback allows your team to gauge how well you currently meet customer expectations and where there’s room for improvement. In addition, asking customers for feedback lets them feel heard and gives them a personal stake in your product’s performance. The software may include features that send surveys, runs in-app surveys, or record user behavior. Some solutions go beyond these features to collect reviews and other forms of feedback from external websites, CRM platforms, or social media sites. You can use the feedback to identify and repair bugs or to enhance your product.
Tagado is a customer feedback tool that gathers all the data your customers leave across various sites and platforms and curates it into a single location. Tagado makes it easy for you to use the information for strategic, data-based product decisions, allowing you to keep up with your customers’ needs and enhance your product. In addition, the solution automatically organizes all the data it collects and provides feedback and competitive analysis. It offers various features that allow for product enhancement and simple data management. Pricing starts at $499 per month.
- Diverse data collection allows for easy risk identification
- Automated product insights based on user needs
- Collects and organizes data from all platforms
Another customer feedback tool, Qualaroo, allows users to collect customer feedback from various sites that organizations can use to enhance their services. The software is convenient for increasing sales, improving website user experience, and raising product engagement. Its features include tracking customers’ sites and why they visit those sites. The software mainly relies on gathering customers’ past actions to collect data that teams can use to adapt products to meet customer needs. Pricing starts at $80 for a base plan which includes most foundational features.
- Good targeting options
- Analyzes consumer insight
- Limited report functionality
- Dashboard visuals are difficult to read
Hotjar is a customer feedback analysis software that offers users insights into where, how, and why their customers do what they do on a user’s site. It provides analytics such as where users get stuck, where they struggle, and what areas of the website they access before dropping off. Hotjar provides users with the option of a basic free plan, while premium options start at €31 a month. The tool also collects customer feedback through surveys and feedback collection.
- Easy deployment
- Informative help section and active user support
- Can turn off website users concerned about privacy
- Setting up forms can be challenging
Customer Loyalty Software
Customer loyalty software is a platform that runs customer loyalty programs automatically. It rewards customers for participating in automated marketing campaigns to increase retention and keep customers invested and engaged with the brand. The platform automatically gathers user data and tracks their behavior, allowing the system to automate all rewards. These platforms can be customizable to meet the organization’s desired campaign length and the types of rewards. In addition to automating the whole process, customer loyalty also allows programming members to participate in loyalty programs without needing to carry around a physical card, instead storing all the relevant information on the customer’s phone. The data gathered by the software can also be used to design and adapt programs to meet customers’ needs.
Square is a payment processor that includes customer loyalty features. The software allows customers to make contactless payments and tracks and documents the payment. It removes the need for physical receipts and simplifies the company’s ability to track customer activity for promotions and loyalty programs. In addition, the software offers a highly flexible pricing plan that varies based on the size of the organization and the number of payments made through it.
- Easy set-up and deployment
- Thorough documentation
- Processing fees can be steep for smaller organizations
- Customers are wary of entrusting an application with their payment details
Open Loyalty is a customer loyalty platform that offers one of the most flexible templates. The software uses customizable loyalty blocks that allow users to create personalized loyalty programs using pre-built loyalty mechanics such as points, rewards, tiers, coupons, and referrals. This lets organizations quickly implement unique loyalty programs, enhancing their customers’ experience. In addition, pricing is flexible, and quotes are available through the company’s site.
- The structure is flexible but prevents errors
- Easily navigable user interface
- No mobile app, currently web-based only
- Limited reporting functionality
Yotpo uses customer review management techniques to increase customer loyalty. The software allows brands to quickly respond to customer reviews, immediately respond to user interactions, post content, and schedule reviews. Additionally, it encourages users to interact and leave reviews by providing each customer with a personalized review experience. The software is ideal for any small organization looking to grow its reach and generate more customer interaction and interest. Free versions of the platform are available, and pricing for premium versions starts at $19 a month.
- Affordable pricing
- Encourages customers to share honest feedback
- Installation can be difficult
- Limited amount of granular filters
Customer Feedback is Essential for Customer Retention
Knowing what your customers want and adjusting your product to meet their needs is the surest way of maintaining your existing customer base. In addition to adapting to meet changing needs, customer feedback makes your customers feel heard and valued and gives them a personal stake in your product’s performance. Utilizing tools that collect diverse feedback across your customers’ native platforms, such as Tagado, is essential. It ensures you get honest insight that your product teams can add to the roadmap and later implement. Get in touch with Tagado today to start transforming data into reality.