35 Eye-Opening B2B Customer Retention Statistics

35 Customer Retention Statistics to Inspire You 

It is common business knowledge that it costs your company more time and money to attract new customers than it does to keep your current customers returning. Industry experts estimate that it is five times more expensive to chase new customers, which is borne out by customer retention statistics. This article will provide you with some suggestions for your company’s customer retention efforts, which will improve your bottom line.

How Does Customer Retention Affects Revenue?

Customer retention is not only important for reducing costs, but also for increasing revenue. According to a study by Bain & Company, increasing customer retention by 5% can increase profits by 25% to 95%. This is because loyal customers tend to buy more, refer more, and cost less to serve. In fact, repeat customers spend 67% more than new customers, and they are 50% more likely to try new products or services from the same brand. Moreover, loyal customers are more likely to provide positive feedback and testimonials, which can help attract new customers and boost brand reputation

• The Cost of Losing a Customer Losing a customer can be more expensive than acquiring a new one. According to a study by Invesp, the average cost of acquiring a new customer is 5 times higher than retaining an existing one. Moreover, a 2% increase in customer retention has the same effect as decreasing costs by 10% .
• The Power of Personalization Personalization can significantly improve customer retention and loyalty. According to a survey by Epsilon, 80% of customers are more likely to do business with a company if it offers personalized experiences. Moreover, personalized emails have an open rate of 29% and a click-through rate of 41%, compared to non-personalized emails that have an open rate of 15% and a click-through rate of 7% .
• The Role of Customer Feedback Customer feedback can help companies improve their products, services, and customer experience. According to a survey by HubSpot, 77% of customers are more likely to recommend a brand to others if they have a positive experience with it. Moreover, 82% of customers are more likely to trust a company that asks for and acts on their feedback.

Technology

Technology is your best friend when it comes to ensuring that your customers choose your company for future purchases. Collecting statistics about your customers helps you build a customer profile. This profile helps you to better understand what attracted your customers to your business in the first place, and it gives you a leg up on what your company needs to do to keep them coming back.

● Companies lose $83 billion annually due to poor customer maintenance efforts.
● To counteract this loss, U.S. companies plan to spend an estimated $641 billion to improve the customer experience.
● The most loyal 20% of your customers comprise 80% of your total profit.

Customer Experience

The customer profile that you create through careful analysis of your current customer data enables you to provide a more user-friendly customer experience. Your customers are far more likely to return to your company if they feel as though your company has treated them fairly and provided them with any required support.

● 72% of your customers will switch to a different brand if they experience poor customer service from your company.
● S. companies lose in excess of $75 billion annually due to poor customer service.

Technology and Customer Experience

When a company utilizes up-to-date technology to improve their customers’ experience, its retention rate improves.

Your customers, especially when you are working with your manufacturing customers, do not have the time to sit through a sales pitch every time you develop a new product. Small- to medium-sized manufacturers wear many hats within their own companies. Often, they are the Chief Marketer, Chief Salesperson, and Production Manager, depending on which part of their company needs attention at any given time.

If your website is clear and user-friendly, customers are more likely to start with your company when searching for a product that is similar to whatever they had previously purchased from you. Keep these facts in mind when designing your website and creating content:

● 61% of all B2B transactions begin online, with clients completing an average of 12 online searches prior to finalizing any acquisition.
● Maintain an active and informative social media presence. Know that 95% of B2B companies create some form of social media content, whether that takes the form of blog posts, newsletters or short videos.
● 79% of B2B marketing strategists find that email is their most effective sales tactic.

Follow Customers Through the Sales Funnel

Not all customers occupy the same position in your sales funnel. Some of your business clients are simply considering a purchase. Others may be actively investigating prices and options. Still, others are ready to pull the trigger and buy the item.

While your customers may be at different places in the purchasing process, the one thing that they have in common is your website. Consider the following facts when guiding your B2B customers through their journey:

● 81% of your early-stage customers prefer to see listicles, and 72% find infographics to be helpful.
● Once your customers reach the middle of your sales funnel, 58% want to see assessments.
● 39% of your late-stage buyers prefer to read case studies, while 38% prefer to read user reviews.

Statistically Speaking

Regardless of your other marketing efforts, keep your current manufacturing clients happy with an updated, user-friendly and informative website.

● Approximately 13% of your unhappy customers will tell 20 different manufacturing company owners about their poor experience with your company.
● 89% of your customers consider your customer service a primary motivator in their decision to remain with your company.
● A mere 5% increase in retaining your customers will increase your profits anywhere from 25% to 95%.

Additional Tips & Statistics for Improving Customer Retention

B2B customers have different needs and expectations than B2C customers. They are looking for long-term partnerships, value-added solutions, and personalized experiences. Therefore, B2B companies need to adopt different strategies to retain their customers and increase their loyalty. Some of the best practices for B2B customer retention are:

• Provide proactive customer service. B2B customers expect fast, reliable, and consistent support from their vendors. They want to be able to reach out to them through multiple channels, such as phone, email, chat, or social media. They also appreciate proactive communication, such as updates, alerts, reminders, or tips. B2B companies that provide proactive customer service can reduce churn by 36%, increase customer satisfaction by 33%, and increase revenue by 22%

• Create customer loyalty programs. B2B customers are more likely to stay with a vendor that rewards them for their loyalty. Loyalty programs can offer various benefits, such as discounts, freebies, upgrades, or exclusive access. Loyalty programs can also help B2B companies collect valuable data and feedback from their customers, which can help them improve their products or services, and tailor their offers. B2B companies that have loyalty programs can increase customer retention by 82%, customer referrals by 80%, and customer lifetime value by 79%.

• Build customer communities. B2B customers want to feel connected and engaged with their vendors and peers. They want to have a voice, share their opinions, learn from others, and collaborate on projects. B2B companies can create customer communities, such as forums, blogs, webinars, or events, where they can interact with their customers and provide them with valuable content and resources. Customer communities can help B2B companies increase customer retention by 54%, customer advocacy by 50%, and customer satisfaction by 46%.

 Before you can retain customers, you need to find them! Generate new business among 460,000 industrial companies and one million decision makers with IndustrySelect, the industrial database. Set up your free demo account loaded with 800 real industrial company profiles so you can test all the features of this powerful software. 

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