Aug
11
There are five empirical observations in business that stresses why customer retention is vital to the survival of companies:
- An average company can lose up to five percent of customers every year.
- Attracting new customers can cost five times more than keeping current customers satisfied.
- Depending on the industry, there can be a twenty-five to eighty-five percent increase in profits with a five percent decrease in customer defection.
- A two-percent increase in keeping customers is just the same as a ten-percent decreases in spending for costs.
- Customer profitability rate tends to increase over the life of the retained customer.
These five observations make a good argument about investing in strategies and solutions to help a company monitor and respond to every single customer transaction. Boosting the customers’ satisfaction and confidence in your business brand, boosts your profits as well.
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