Why You Should Pay Attention to Your Customer Retention

WHY YOU SHOULD PAY ATTENTION to Your CUSTOMER RETENTION It can be easy for small business owners to focus all their energy on acquiring new customers. The fact is, this method is extremely costly and could potentially damage an existing customer's perspective on the business. Here are the latest numbers showing why focusing on keeping current customers costs less and contributes to the overall health of your business. EXISTING CUSTOMERS RULE! 61% of small businesses report that more than half of their revenue comes from repeat customers, rather than new business. (BIAKelsey) It's easier to sell to existing customers than to brand new prospects. (Via Marketing Metrics) It costs more to acquire new customers than it does to keep current ones. (Forrester) A 5% increase in customer retention can increase a company's profitability by 75%. (Bain & Company) 80% of your company's future revenue will come from just 20% of your existing customers. (Gartner Group) Returning customers spend on average 67% more than first-time customers. (Bain) The average repeat customer spent 67% more $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ in months 31-36 of his or her shopping relationship than in months 0-6. (Bain) ACQUIRE NEW BUSINESS THROUGH НАРPY CUSTOMERS Customers are 77% more likely to buy a new product when learning about it from family and friends. (Nielsen) 92% of consumers around the world say they trust earned media, such as word-of-mouth or recommendations from friends and family, above all other forms of advertising (Nielsen) Word of mouth is the primary factor behind ! 20-50% of all purchasing decisions. (McKinsey) TIPS FOR MAKING YOUR CUSTOMERS #1 FANS FOR LIFE 1. Keep them in the loop. Small businesses that send loyalty members two to three communications per week see 3X more customer visits than businesses that do not send any communications. [SpotOn] 2. Offer rewards for loyalty. of women and 53% of men say they will stay with a brand longer when earning rewards. (Cherry London) 3. Pay attention to what your customers want. The three most important drivers of brand loyalty are: 1. A GREAT PRODUCT 2. BRAND RECOGNITION 3. TRUST [NewsCred] 4. Don't ignore customer feedback. Act on it! Resolve a complaint in the customer's favor and they will do business with you again 70% of the time. BE2OTAED [Lee Resources] Sources: • http://citygro.com/mind-blowing-loyalty-marketing-stats/ • http://www.helpscout.net/75-customer-service-facts-quotes-statistics/ • http://www.forbes.com/sites/alexlawrence/2012/11/01/five-customer-retention-tips-for-entrepreneurs/ P PATLive :)