7 Key Stats to Get Stratospheric Customer Retention
The main goal of most, if not all businesses is ultimately customer retention. The goal isn’t only to attract customers, but also to make them stay. Learning how to create loyal customers can help boost the revenue for many businesses.
This infographic offers seven important statistics you need to know in order to increase customer retention rates for your company.
Customer Retention Statistics:
- The chances of selling to an existing customer are 60 – 70%.
- The chances of selling to a new prospect are only 5 – 20%.
- Acquiring new customers is about 5 – 25x more expensive than retaining existing ones.
- In most business, increasing customer retention by merely 5% increases profits by 25-95%.
The Key to Retention is Engagement:
- Engaged customers are 5x more likely to only buy from the same brand in the future.
- Highly-engaged customers are 90% more likely to buy, and spend 60% more per transaction.
- A strong emotional connection with a brand is a bigger predictor of loyalty than factors such as ‘effectiveness’ or ‘ease’.
Most define customer retention as a process whereby you work towards making customers happy and satisfied, so that they continue to renew your product/ service. Customer Retention Management is a process through which you increase customer satisfaction by helping customers achieve their desired outcome using your product or service.
In the direction of retention, Customer Retention Management software has an important role to play, as it records customer contact information such as email, telephone, website social media profile, and more. It can also automatically pull in other information. The CRM system organizes this information to give you a complete record of individuals and companies, so you can better understand your relationship over time. Besides your customer retention strategies in services must include attracting customers with special offers, give more attention to your most profitable customers, carry out customer engagement at regular intervals and so on.
Customer retention examples: Communication is a key not only to educate your customer about the product, but also, at times when you have to thank your customers for having selected you over your competitors and also to apologize when you make a mistake. Measuring customer retention plays a critical role in the success of your company. The reasons or causes for churn, are the difficulties faced by customers during some phase of their journey. By conducting surveys and gathering customer feedback you are better placed in taking active measures in winning back customers who are on the threshold of churn.
The ultimate way to improve customer retention is by providing great service. It not only helps in increasing a list of satisfied and happy customers, but also helps in converting your customers into brand advocates – this is directly connected to the growth of your business.