Why Customer Retention is Key to Busines Profitability
The Harvard Business Review has had some very interesting articles on customer defections and the knock-on effect on profitability. Here are some interesting facts:
US corporations lose 50% of their customers every 5 years.
The longer a customer stays with a company, the more that customer is worth
Reducing customer defections by as little as 10% can double your profits.
It’s 6 times easier to sell to an existing customer than to a new one.
Why then do business owners not do more to stem defections, by keeping in touch with their customers regularly, measuring customer defection rates and following up customers who haven’t bought recently?
Here’s a rare example of a company who actually follows up customers who might be dropping off their radar, a postcard I received the other day:
If you’d like to learn more about reducing your customer defection, why not get in touch or join the A+BAC business community on Facebook. This is the place where you can get all your business questions answered for free, in real time, as well as bring your business experience to others.