We’ve all heard that organizations who increase customer retention rates by 5% can increase profits by as much as 95%, but did you know that a 2% increase in retention is similar to a 10% increase in costs? Or a 10% increase in customer retention levels can result in a 30% increase in the value of a company?
These statistics are mind-blowing and they go to show how much of an impact retaining customers can have on an organization as well as why it’s so important to want to keep customers coming back for more.
However, the sad truth is that many organizations don’t focus on retention, but on acquiring new customers, which is much more costly. There needs to be a happy-medium because everyone wants loyal, long-term customers and also new customers to eventually become those long-term ones. You need to be strategic with how you go about this, but if done correctly, you will thrive.
Check out this infographic by Sparked, for more stats on why companies don’t focus on retention and what the benefits are if they did.
How in-tune are you with your customers? Are you talking to them regularly to take their pulse? Understanding what they like, dislike, would like to see more of, etc. is a great way to retain them. When customers feel like they have a voice in the direction of the company, they are more apt to be a long-term customer and recommend others to use your products and/or services.
I'd love to hear how you retain your customers. Feel free to share in the comment section below.
Want to learn more about the benefits of collecting customer feedback? Check out this recent Aberdeen report we sponsored: Voice of the Customer: Empowered Customers Bring a Wealth of Business Insight.