Heralded as a silver bullet in guaranteed revenue streams, customer retention is still largely a minefield for many businesses. With around 20% of customers not returning to nearly a third of businesses after their first purchase, retention is becoming a big problem in many businesses.
Depending on what industry you’re in, acquiring a new customer can be 5 – 25 times more expensive than retaining an existing one. Research by Bain & Co
Mick Jagger famously sang about his lack of satisfaction, and if your customers ever feel that way, they won’t remain your customers for long. Monitoring customer satisfaction is a vital part of any customer relationship management strategy. No matter how frequently you’re in contact or ‘feel’ that things are going well, asking your customers how they rate your service or products will strengthen the relationship. You’ll know when is the right time to upsell, or dampen any relationship flames before they grow into a fire
When you’re trying to grow your business, bringing in new customers or clients left right and centre seems like an attractive option.
Think of customers like cars. Buying a new car might seem attractive, but there is another option.
You’ve been driving the same car for a while now, and it’s not been letting you down. Over time, without appropriate care, its reliability might start to slip, and eventually, it will break down