With about half of a company’s revenue is from approximately 8% of its most loyal consumers. Customer retention is the key to long time growth for consumer product businesses.
At a point when customers are overwhelmed by options, whether a customer retains or not broadly is decided by two important factors
- Their experience with your brand after their purchase
- Your remarketing efforts.
Product warranties are an excellent way to win your customer's trust and retain them, research finds that 81% of customers say a positive warranty claims experience makes them more likely to purchase from the company again.
To leverage warranties to grow your customer retention rates, it’s important to understand the basics of customer retention. Let’s take a look at what customer retention is, why it’s important, and how a warranty program can help you in your customer retention goals.
What Is Customer Retention?
Customer retention is the measure of the number of returning customers who have multiple transactions over some time.
Customer retention strategies focus on ways to build a loyal base of repeat customers. Loyal customers maintain a long-term relationship with your brand that keeps them coming back.
You can calculate your customer retention rate by first determining a set period over which to measure your customers. Then look at the number of customers at the beginning and end of that period and count how many of them are new.
If you calculate your customer retention rate over a year, the equation would look like this:
Total customers by end of the year − new customers within the year
Total # of customers at the start of the year
Retention rates will vary depending on the industry and product type. Try measuring the retention rate over several periods and see whether you have a general trend of an increase or decrease in repeat customers.
How does NeuroWarranty's warranty management software help you increase customer retention?
Warranty management software helps brand increase customer retention by
Digitizing warranty registrations to provide a positive post-sales experience.
Most customers think of warranty claims as a hassle-filled process as traditional paper-based warranty programs make them secure their old bills and warranty cards and present them at the time of warranty claims.
This becomes annoying for your customers as it is difficult to secure old paperwork, and customers are often buying new products almost every week, making it more difficult to manage multiple warranties.
Enabling digital warranty registrations at the time of purchase allows customers to digitally register their brand for a future warranty claim, saving them from the hassle of managing exhaustive paperwork. Educating your customers
Your warranty process is a crucial post-sales touchpoint with your customers and should be used to educate and engage them in activities more than just warranties.
NeuroWarranty's warranty registration solution creates for you a custom landing page that your customers get directed to while registering warranties you can use this digital real estate to educate and engage your customers by providing how-to guides, answering FAQs, collecting feedback and even cross-selling related products.
Automating claims for an unparalleled post-sales experience
Warranty claims are the true test of a brand's post-sales experience. And depending on their warranty claims experience of their current purchase, the customer will decide if they want to engage with your brand again.
The best way to win customers over is to automate your claims process. NeuroWarranty automates your claims process by allowing your customers to claim a warranty in a single click, and at the same time, saving you money and labour spent in managing these claims.
Enabling warranty tracking
Advanced warranty tracking software not only makes warranty tracking easier for the brands but also enables customers to track and manage multiple claims at once. NeuroWarranty's warranty tracking solution allows customers to claim, track and manage multiple claims on a single screen. Allowing users to track their claim status, and at the same time, saving costs spent on physical customer communication and support tickets.
Easing communication with your customers
Customers, when registered for a warranty claim, want constant updates on their claim status, but ensuring that their customers are aware of their warranty claim's status is an expensive and time-consuming process.
NeuroWarranty's warranty management software, with the help of its inbuilt CRM, sets up a direct communication channel between you and your customers. The customer service teams can manage customer communication on a single interface with minimal effort.
Helping you remarket effectively
Customer data is a gold mine for any business and is the biggest advantage that they could have. Businesses use it to help them retain their existing customers by utilizing a loyalty program and acquiring new customers for their other products through a cross-selling strategy.
They can also use customer data to tailor every online marketing campaign to their existing customers to increase their return rates. Customer data can be used to promote businesses in a way that's more personal because it's like having a relationship with every customer.
NeuroWarranty's warranty management software specializes in delivering end-customer data to brands, and at the same time, helps brands build a profitable interaction with their customers.
To know how NeuroWarranty helped market leader Syska increase profits by harnessing customer data read the complete case study here.
It is impossible to remarket to existing customers without having their data. Most consumer brands struggle with remarketing as their sales channels, Amazon and retail, do not allow them to access or collect end-customer data.
NeuroWarranty's warranty management software boosts your repeat sales by bringing you data from all your end customers (Amazon and retail).
Allowing your marketing teams to reach your customers and boost repeat sales by personalizing and segmenting their marketing message using data provided by the warranty management software.
Investing in advanced warranty management software like NeuroWarranty not only helps you provide your existing customers with an unparalleled post-sales experience but also helps you gather end-customer first-party data and resell effectively.
What do leading brands say about NeuroWarranty?
The Key to Customer Retention
Companies that retain more customers are those that are dedicated to providing a top-notch customer experience that delights consumers.
Customer-centric retailers should make sure that a positive customer experience applies to every aspect of their business. A positive warranty customer experience from beginning to end is key to leveraging warranties to increase your customer retention.
Want to boost your customer retention rates? Schedule a call with our solution experts now - Schedule A Call.