How to Keep Customers you can’t afford to Lose
source: Fran, Pixabay
“If you don’t care, your customer never will.”
Customers leave when they are unhappy with the experience you deliver. Customer churn affects: Business Performance, Revenue and Profitability, and Marketing and Re-acquisition.
Forrester research states that it’s 5 times more costly to acquire a new customer than to keep a customer; Harvard Business School states that a 5% increase in customer retention equals a 25% - 95% increase in profits. With these figures it is worth focusing on keeping the customers you can’t afford to lose.
Companies now find that 60% - 80% of revenue and profit comes from their top 10 – 20 accounts. It can be as high as 95% of sales and profit. So the consequences of losing one of these customers are dramatic. In the B2B world with long buying cycles it is virtually impossible to replace these customers – and your competitors will protect them at all cost.
“Every contact we have with a customer influences whether or not they’ll come back. We have to be great every time or we’ll lose them.”