Learning how to create customer retention is a vital skill that we must all master. How sales data gets interpreted is different for everyone, but whatever the case, we must learn to create a customer experience that provides clients with continuous value and nurture. If you want to make your book of business or organization grow, then you need to create growth for your clients. You can't expect them to invest in you if they don't see the results they expect. Customer Retention offers tremendous revenue potential.
Finding growth in your current customer base often gets overlooked, especially if your organization or your strategy is geared towards client acquisition. New clients offer growth potential, but they also make you incur hefty sales and marketing expenses. According to KISSmetrics, organizations tend to focus more on acquisition vs. customer retention, even though acquiring new customers can be 7x more costly. Client acquisition can be expensive, but it's also necessary.
Getting your customer base to stick around is also a necessity. Take a moment to assess 5 customer retention stats that can give you a greater understanding of the value it provides, along with why you should care to learn how to interpret it. After all, where would we be without our clients?
1. What Happens When You Increase Customer Retention By 5%?
Salesforce reminds us that by increasing customer retention by 5%, we can increase our profits by up to 125%. Wouldn’t it be nice?
2. By 2020, Customers Will Mostly Manage Their Own Relationships
According to Gartner, customers will manage 85% of their relationship with an enterprise without having a person involved to help them. It’s probably a good time to start learning and interrupting how customers feel about you.
3. The 80/20 Rule
Gartner once explained that 80% of our potential business would arrive from 20% of our present customers. If you haven’t figured out that math already, it’s worth discovering the value every single customer can offer in the future.
4. CEOs Believe Their Stuff Is The Best And They Are Wrong
Bain & Company found that 80% of CEOs thought their organization offers an awesome customer experience, but only 8% of their customers would agree with them. So you probably shouldn’t go with your gut feeling on how customers feel about you. Ask them.
5. Fact! Customers Hardly Ever Voice Their Complaints
According to Ruby Newell-Legner, businesses only hear back from 4% of their dissatisfied customers. It tells us that 96% of their customers never express their complaints. So if you hear most of your customers use the “F word” when you ask them how they’re feeling, perhaps they’re not “fine.”
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