It Is True. 5% Retention Can Equal 25%-95% in Profit Growth
Did you know? Even a small increase in customer retention rates can substantially boost your profits. According to a Harvard Business School study, increasing customer retention rates by just 5% can grow your profits by an impressive 25-95%! Do you want to know more about how a customer retention program or campaign can help your business?
Studies from the U.S. Small Business Administration and U.S. Chamber of Commerce found new customer acquisition can cost a company as much as 5 to 7 times more than simply retaining existing customers.
With numbers like these, developing sound customer retention strategies is one of the most important things your business can do. However, many companies focus more on acquiring customers, even though it requires a much greater investment. Why wouldn’t your company do both – work to retain current customers while putting forth a strong effort to acquire new customers? Keeping customers should be part of any company’s business strategy and marketing strategy!
One of the greatest components to the incredible achievements of companies like Amazon and Zappos is their ability to instill customer loyalty within their existing customers. Customer acquisition is important to them, but loyal customers are their “bread and butter”. Because customer loyalty and eliminating churn are priorities to smart companies like Amazon and Zappos, customer experience, customer satisfaction, and user experience are factors they plan for, in both their business strategy and marketing strategy.
B2B companies can follow this model of successful B2C companies who make happy customers, keeping customers, customers experience, customer support, and customer satisfaction a central focus to the way they do business.
Intelemark Helps Companies Optimize
Past Efforts and Current Customers
Once you invest the time and energy to bring in new customers, you want to keep them loyal to your brand. Intelemark’s Customer Retention will help you do just that. Our experienced team will work with you to develop customer retention strategies that strike the right balance between “before” and “after.” In other words, you don’t want to focus the majority of your effort on always soliciting new business. Although we help you acquire new customers, we’ll also work with you on customer and client retention to keep the ones you already have. It is absolutely a strategy your company should have in its toolbox. Repeat customers are far more cost-effective than always searching to increase your customer base only through new prospects who don’t already have knowledge about or a relationship with your company. Take the opportunity to capitalize on your past efforts and the hard work already done.
To get started with Intelemark, we encourage you to examine your customer retention strategies, retention marketing plan, and messaging.
- What metrics do your currently use to determine the proper level of customer engagement with your customer base?
- Have you determined the customer lifetime value of a customer, which should inform the customer retention program necessary for success?
- Do you have a proper support team who manages customer relationships and/or the onboarding process for your products or services?
- How often does your company follow up with customers?
- Do you have the necessary loyalty programs in place for success in retaining customers?
- Do you have a proper support team to respond to questions or issues in real-time?
- Have you determined the proper period of time to follow-up with customers and start engaging them to renew their contracts with you?
- Have you determined the number of customers you must retain in order to eliminate the extra burden of additional customer acquisition needed to hit revenue targets?
- Have you determined the necessary team, customer loyalty perks, customer engagement and follow-up to meet customer expectations, enhancing your chances of retaining them as a customer?
- What metrics do you currently use to determine customer success of your clientele who utilize your products or services?
- Do you have new products that you can offer to your current customer base?
- While not technically customer retention but an extension of it, do you have a referral program, which will allow you to optimize the value of happy customers?
As you can see, customer retention is vital to every company’s success. It is a much less expensive, cost-effective way to grow revenue, productivity, and profitably. This service is in Intelemark’s wheelhouse and we can help!
Contact Intelemark today to learn how our customer retention services can create extraordinary customer experiences for your company while tremendously increasing your revenue.