Asking you how are you retaining your customers? Here are 5 different viewpoints about this
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.
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.
Depends on the business. But to put it in a simple way, what is cheapest? Getting new customers or retaining existing ones?
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.
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.