5 Customer Retention Strategies To Reduce Buyer Regret

Strategy #1: Launch reward programs

According to our 2023 Global Software Buyer Trends Survey, 68% of businesses are swapping out software more often than they did in 2021. One effective way to avoid this and mitigate regret that can lead to churn is through reward programs. 

A reward program can bolster customer loyalty through incentives such as discounts, cashback, redeemable points, and exclusive deals. By aligning rewards with customer preferences, you’re not just enhancing loyalty but also giving buyers fewer reasons to second-guess their investment in your software.

Strategy #2: Create winback campaigns for at-risk accounts

At-risk accounts are customers who may be showing signs of disengagement or dissatisfaction, putting their loyalty and future business with your company at risk. Identifying these accounts early is crucial not just for customer retention but also for mitigating buyer regret that could lead to churn.

Intent data offers a way to identify and manage these at-risk accounts proactively. This data provides insights into your customers’ online activities, such as their searches, website visits, and content consumption. It also identifies which customers are looking for alternatives (e.g., reviewing your competitor products) and flags them as at-risk.

This information enables you to initiate timely retention conversations, provide additional support, or offer special deals to convince them to stay with your company. Leveraging intent data can protect the investment made in customer acquisition by keeping the existing customers engaged and satisfied.

Strategy #3: Upsell and cross-sell

Upselling and cross-selling are critical strategies to maximize your revenue and strengthen client relationships. These tactics go beyond merely increasing sales and play a pivotal role in reengaging existing customers, particularly those considering alternatives.

By effectively implementing upselling and cross-selling, you can demonstrate a deep understanding of customers' evolving needs, offering solutions that provide more value. A case study in point is that of a retail company that used Gartner Digital Markets' intent data solution and generated $89k in pipeline revenue in just one year through strategic upselling and cross-selling.

By analyzing customers’ preferences, past purchases, and feedback, the company identified products and services that complemented what their existing users already enjoyed. This proactive approach led to a successful campaign where customers received personalized recommendations, resulting in an increased average order value and a boost in loyalty. 

Strategy #4: Build your presence with customer reviews and on comparison sites

According to Gartner Digital Markets’ research, one in three buyers (33%) rate customer reviews as their most vital consideration when building a vendor list — alongside product trials — among all the information sources listed. This reflects the utmost importance of reviews in the software buying journey.

Importantly, when buyers fail to use software comparison sites (such as Capterra, Software Advice, and GetApp), the rate of purchase regret jumps from 54% to 64%. By prioritizing customer reviews, you're not just understanding customer feedback but also reducing the chances of buyer regret and boosting customer retention.

Strategy #5: Prioritize post-sales communication

Your post-sales communication strategy should extend beyond traditional customer service and comprise a range of activities to maintain customer relationships even after a sale. These activities involve consistent follow-ups, personalized automated offers, and recognizing important occasions such as birthdays or anniversaries. 

These practices engage customers proactively and demonstrate your commitment to their ongoing satisfaction and success. They enable you to offer an enhanced custom experience that fosters long-term loyalty and reduces buyer regret.

Post-sales communication becomes more evident when considering buyer regret—49% of software buyers specify that immediate vendor response to customer requests is the most effective way to offset purchase regrets, per our survey. Another 46% say enhanced implementation support can tip the balance. 

Measure your retention outcomes to counter buyer regret

Customer retention is a dynamic endeavor. Therefore, build your strategy on ongoing commitment, agile adjustments, and a customer-first approach. Understanding the after-effects of customer retention is not just about the numbers; it’s also about minimizing buyer regret to foster long-term relationships. Here are some metrics to better align your approach and understand its impact:

• Customer retention rate (CRR): This metric indicates your effectiveness in retaining customers over a set period. A high CRR suggests you're successfully mitigating buyer regret.
• Customer lifetime value (CLV): This metric estimates the total revenue you can anticipate from a customer throughout your relationship. It serves as a direct reflection of your efforts to prevent post-purchase doubts or regret.
• Net promoter score (NPS): This metric assesses the likelihood of your customers recommending your product or service to others. A high NPS indicates reduced buyer regret and strong customer advocacy, reflecting satisfaction with your offerings and customer service.

For more insights on averting buyer regret and enhancing customer retention, check out our latest eBook—Why Software Buyers Experience Regret.