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How are you Retaining your Customers?

Asking you how are you retaining your customers? Here are 5 different viewpoints about this 

marketing.sales

Jordan Witkov
Customer retention is important for your company’s reputation as well as its pocketbook.  The cost of getting a new customer typically exceeds that of keeping an existing one.

It is important to but a program in place where you have contact with your customers beyond the sale.  I suggest using a CRM to manage followup with existing clients.

If you or your company is looking for one to try, Base has a FREE trial to help small business simple CRM and sales tracking app offering unlimited users and contacts.

Paul DeJoe
You MUST FIRST understand “why” and “what” makes them keep coming back.  If you reach out to more potential customers without knowing these answers, you’re wasting time and guessing at what is working.  This has happened to me three different times. 

Jose Simoes
Depends on the business. But to put it in a simple way, what is cheapest? Getting new customers or retaining existing ones?

Tucker Marsano
All businesses should realize that cus­tomer reten­tion is a cost-effective and prof­itable strategy that is imper­a­tive in today’s com­pet­i­tive eco­nomic environment. Take a look at these statistics on the effects of customer retention:

• Acquir­ing new cus­tomers can cost as much as five times more than sat­is­fy­ing and retain­ing cur­rent customers
• A 2% increase in cus­tomer reten­tion has the same effect as decreas­ing costs by 10%
• Depend­ing on the indus­try, reduc­ing your cus­tomer defec­tion rate by 5% can increase your prof­itabil­ity by 25 to 125%
• Cus­tomer prof­itabil­ity tends to increase over the life of a retained customer

Customer retention leads to increased revenue, lower customer acquisition costs, and increased referrals. If you are interested in any additional information about the value of customer retention, check out this article.

Jim Palmer
Let me answer why customer retention is so important in two words: Lifetime Value. If you want to sell more of your goods and services, and therefore increase your profits, then turn to the people who have already identified themselves as buyers – your current customers!

Here’s something that should get you very excited! Each 1% increase in customer retention equals 7% increase in profits! One big reason for that is that it typically costs at least five times more to obtain new customers than it does to retain (and sell more to) customers you already have.

I like all their comments and suggestions..if you liked them or have a tip to share..be sure to leave your comment below.

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