about customer loyalty
According to Harvard Business Review “acquiring a new customer is anywhere from five, to 25 times more expensive than retaining an existing one.” Which is a great incentive to work on your customer retention strategies. But what about when you’ve already lost them?
Never fear, that list of lapsed customers offers a great opportunity
Sometimes in business, we can be so pre-occupied with chasing down new customers and offering them sparkling deals to attract them in, that we neglect the loyal customers we already have.
In fact, looking after customer relations is vital to building your business. If people are happy with your service, not only will they come back for more, but they have the capacity to become advocates for your brand, bringing more customers through your door without you having to do any of the hard work. Simple, right?
As a manufacturer, wholesaler or distributor, 80 – 90% of next year’s revenue will come from your existing customers. Knowing which customers are at risk of leaving, could be buying more or are true advocates of your brand is an essential part of a successful business. To gain insight, you need to apply a customer health score to every account. You may already do this with a red, yellow, or green system