There is a strong correlation between customer loyalty and getting more word of mouth referrals.1
So what are you doing to retain your existing customers so you can increase your business’ profitability? Here are some quick facts on Customer Retention.
- Getting new customers is 5 times more expensive than retaining existing customers.
- Repeat customers are less expensive to service because you’ve already created files and set up their account.
- Long term customers aren’t easily swayed by a competitor and are less sensitive to pricing fluctuations.
- A 2% increase in customer retention has the same effect as cutting costs by 10%.
- A 5% decrease in customer defection can increase profits anywhere from 25% to 125%, depending on the industry.
Call me today at 817-521-8570 to ask about our Customer Reactivation campaign that can help you identify past customers to reactivate and/or retain and convert them back into customers.
1 Leading on the Edge of Chaos”, Emmett C. Murphy and Mark A. Murphy