B2B tech brands are increasingly recognizing the importance of retaining existing customers to prevent them from switching vendors. According to our Era of Engagement Playbook, 67% of tech brands are placing a greater emphasis on serving their existing customer base. This shift in focus is driven by the prevalence of buyer churn, leaving customer loyalty and retention as a top priority for businesses.
Challenges Leading to Buyer Churn in B2B Tech
There are multiple challenges within the technology industry that are leading to buyer churn. Increased competition from new players entering the market at a rapid rate means that buyers have more options to choose from, making it easier for them to switch vendors in search of better products or services.
Additionally, buyers’ customer experience expectations have risen significantly. We’ve reached an era where B2C and B2B buyers have similar experience expectations. And, while B2C tech companies have long recognized the importance of the customer experience, many B2B tech companies are venturing into a new territory.
Whether in B2C or B2B, buyers expect seamless, efficient and pleasant interactions with tech brands. As more tech brands enter the market, there is no need for customers to lower their expectations, creating a heightened demand for superior customer experiences.
Adoption vs. Engagement
It’s important to boost engagement across the entire customer lifecycle, from adoption to loyalty and engagement. Before we dive into ways to increase engagement as a tool for retention, we must distinguish between adoption and engagement in the customer lifecycle.
Adoption refers to the crucial initial phase where customers accept and start using a product or service. This stage often hinges on effective marketing and the presentation of the product’s value.
However, it’s only the beginning of the journey. Some strategies for increasing adoption include the following:
Engagement, on the other hand, signifies the ongoing, interactive relationship between customers and the product or service. It’s not a singular goal, but a continuous process that encompasses all touchpoints between the customer and the brand. Ensuring a smooth transition from adoption to engagement is pivotal for long-term success. Some strategies for increasing both adoption and engagement include the following:
- Enhanced Onboarding: Implement onboarding routines that guide users through website flows. Make it easy for customers to understand the product, its relevance, and how to use it to achieve their desired outcomes.
- Focus on Delight: It’s important to focus on providing a delightful customer experience as a whole. By paying attention to factors that seem small, like how a button clicks or how the user scrolls through a platform, B2B tech brands are building not just a product, but an experience for the user.
- Improved Content Organization: On the note of focusing on delight, businesses should organize their products in a clear and user-friendly manner. Ensure that customers can easily navigate through individual product parts or features, enhancing their overall experience.
- Focus on Outcomes: A good product is the foundation of engagement. If a product doesn’t deliver on its promises and provide value to customers, it’s unlikely to drive engagement or loyalty. It’s important to update based on customer feedback and continually work to improve a product.
In a landscape marked by increased competition and evolving customer expectations, B2B tech brands must adopt a customer-centric approach that prioritizes engagement and delights customers throughout their journey. By deploying strategies to boost product engagement across the entire customer lifecycle, brands can build stronger relationships, foster loyalty, and thrive in the dynamic B2B tech market.