Let’s look at the numbers, and then decide
Thursday, August 26, 2010 1:19:11 PM
I love my wife. I want to be loyal and keep her. And part to of me also has NO desire to be out there marketing myself.
Funny enough if you think about it, most marketing and sales campaigns are designed for the new customer.
But have you considered the following?
- 80% of your sales comes from 20% of your customers and clients
- On average, companies lose 10% of their customers each year
- 68% of past customers said they left because they did not feel loved
- Acquiring new customers can cost as much as 5 times more than retaining current customers
- A 2% increase in customer retention has the same effect as decreasing costs by 10%
- Reducing your customer defection rate by 5% can increase your profitability by 125%
Plus, customer profitability tends to increase over the life of a retained customer.
Let’s hear it for loyalty and retention!
It’s time to rethink our marketing and sales strategies, and the marketing systems that we use to drive our strategies.