Business needs customers but acquiring one new customer is 10x times more costly than marketing to existing customers. Businesses that grow, are those that keep their customers. Let me give you another startling fact: your success rate selling to a customer that is already with you is 60-70%, but when you try selling to a new customer it is just 5-20% (Marketing Metrics stats). So, what is your customer retention rate? And are you listening to what your CRM is telling you?
Refresh: What is customer retention?
Many businesses buy into the impression that if they have a great product or service then customers will remain. That can be true but only for a short while. The harsh truth is that customer loyalty is famously fickle.
Customer retention is the capacity of a business to keep their customers engaged and reduce churn.
Customer retention doesn’t happen on its own, it needs a business strategy that lays out customer retention techniques. These techniques must personalize customer experience, re-engage differently with at-risk customers and provide friendly and knowledgeable customer service.
If your customer loyalty is high then it is a clear insight on overall performance of your