Aug

11

There are five empirical observations in business that stresses why customer retention is vital to the survival of companies:

  1. An average company can lose up to five percent of customers every year.
  2. Attracting new customers can cost five times more than keeping current customers satisfied.
  3. 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.
  4. A two-percent increase in keeping customers is just the same as a ten-percent decreases in spending for costs.
  5. 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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