There’s an old adage in retail: “It takes months to find a customer and only seconds to lose one.”
Study after study has shown that the act of building a loyal customer base is one of the most effective drivers of a business’s growth. However, many companies have failed to recognize the importance and instead prioritize the perpetual pursuit of new customers.
The practice of customer acquisition can be highly expensive and often offers a paltry return on investment. In fact, did you know that acquiring a new customer can cost six to seven times more than retaining an existing customer? What’s more, loyal customers offer a significant return on investment with a mere increase of 5 percent proven to result in a profit boost of anywhere between 25 – 95 percent!
Customer retention not only offers an effective means of growing your business, but it also provides a way to build your company’s brand. Having longstanding relationships with your customers presents many marketing opportunities with the ideal situation being the development of a brand “tribe” i.e. customers who actively believe in and promote the brand.
So how can you go about improving your business’s customer retention rates? The first step would be to check out this very informative infographic from M2 On Hold. This graphic includes vital information including key statistics, expert insights and practical tips on how to improve your customer retention rates plus much, much more!