Businesses may focus on new customer programs, but going after customer retention is a lot more profitable in the long run...
Satisfaction drives loyalty. More importantly, it drives retention. The key to a healthy bottom line is the ability to keep your customers.
According to the book Outside In [click here for infographic] by Harley Manning and Kerry Bodine, retaining customers drives revenue in three ways:
- Incremental sales from current customers.
- Retained sales as a result of lower churn.
- New sales driven by word of mouth (referrals).
Can small improvements in retention make a big difference? Absolutely. According to Gartner Group, “A 5% improvement in retention can increase profitability by upwards of 25% to 125%.”...
Paul Roetzer writes a thoughtful post and reflections on marketing leadership.