Businesses that provide high-quality goods and services flourish in today’s world. Customers have always been and will continue to be vital to businesses.
Customer retention refers to a customer’s willingness to stay with any business. Customers are attracted to businesses that provide them with quality services. Customer retention is a major concern in the organization since it assures that customers will stay with the company for a longer time.
This article shows you how MSME can help you with the most important factor of any business.
How Important is Customer Retention?
According to Roopa Singh’s essay “An Approach to Increase Customer Retention,” internet businesses lose 25% of their clients every year on average. A little improvement in client retention can boost sales and profitability by more than 25%.
Assume you have 25,000 consumers who buy from you every year, and 20% of them will never buy from you again. If acquiring a new client costs $100, replacing lost consumers will set you back $500,000. You save more money if you keep your clients rather than replace them.
Acquiring new consumers takes time. To examine what is working and what is not, you need to first set out a strategy, then design an acquisition plan, implement it, then wait for the data to flood in. It is also your responsibility to maintain track of the number of clients who arrive as a result of the new strategy. This will free up a lot of time for them to produce value by doing what they do best. The cost of acquiring a new customer is 5-12 times greater than that of keeping an existing customer.
It takes time to not only acquire new clients but also to create a relationship with them. After successfully attracting new consumers, you must devote time and effort to developing a connection with them. They’ll need some time to figure out what their desires, aspirations, expectations, spending patterns, and price sensitivity are. And although they’re doing so, the profit from new clients is still low.
Acquiring a new customer involves time, energy, manpower, and money, and all of this adds to the cost, reducing earnings.
With the use of blockchain technology, there are numerous ways to keep your consumers. What is blockchain technology, and how might it help you retain customers?
What is Blockchain?
Blockchain is a decentralized system of recording and accounting for transactions. They are storage units storing digital information about transactions, such as the date, time, amount, and parties involved. Each block has its unique code, known as a hash, which allows it to be recognized from the others.
New blocks are added to the end of a chain, which is a public database that everyone can examine, as new transactions are made. Blockchain technology is distributed over a peer-to-peer network of nodes, making it more anonymous and secure than previous payment methods. Because of its decentralized nature, hackers can’t readily tamper with the data because each block carries a unique hash.
How might blockchain technology assist you in retaining customers?
3 Customer Retention Tactics You Can use For your Business with MSMECOIN
Here are three ways MSMECOIN can help you with customer retention by adopting blockchain technology.
- Initial Coin Offerings (ICOs)
ICOs are another type of cryptocurrency that companies use to raise funds. Investors acquire unique cryptocurrency “tokens” in exchange for their monetary investment in the business through ICO trading platforms. It is a type of crowdfunding in which a digital token is created and sold to raise funds for a project’s development.
This one-of-a-kind token works as a unit of currency, granting investors access to specific aspects of the issuing company’s enterprise.
With MSME, your business can get funding from possible investors including potential customers with the help of Truss, a DeFi product. Truss is a platform that allows businesses to acquire money while also ensuring that investors are rewarded for their contributions. Customers who invest in your business are more likely to stick around as the success of their investment depends on the success of your business.
- Blockchain-based Loyalty Programs
Building a personalized loyalty program is one sure way to retain your customers. By allowing your customers to earn points on purchases to be redeemed on valuable rewards, more value is injected into your business-customer relationship. A good loyalty program would be a great addition to your business as retaining your customers leads to maximized returns.
Blockchain-based loyalty programs tend to have more success because of their many benefits. One of such is that it is safer.
According to a recent survey, approximately 70% of consumers are concerned about handing out personal information. With the ever-increasing occurrences of online identity theft, this is logical.
These dangers can be reduced using blockchain technology. Customers may not need to provide personal information because of the anonymity of cryptocurrency.
The security features of blockchain are also advantageous to businesses. It is difficult to hide unauthorized transactions because blockchain records are transparent and trackable. This makes it more difficult for users to take advantage of the loyalty program.
With the help of MSME Academy, you can learn how blockchain technology and cryptocurrencies work. You can also learn how to implement this knowledge in your business which can include building a blockchain-based loyalty program.
- Smooth Business Operations
Blockchain systems reduce costs associated with transaction management, fraud, and system errors.
By investing in blockchain and following the advice of the top cybersecurity consultants, you can give more value to your customers and reduce the costs of manually running the business. Blockchain technology is greatly used by big businesses for their supply chain process and faster transactions.
MSME is laser-focused on helping micro, small, and medium businesses close the gap between the top dogs. With its different products including the MSME Academy, you gain access to blockchain education that allows you to thrive in a highly competitive market.
Conclusion
Customers are the heart of a successful business. They are the differentiating factor between a successful business and one that is not. Customer retention should be a key priority for you and your business and MSME can help you with that. Take advantage of MSME features and take your business up a notch.
