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Do repeat customers matter? |
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Retaining Profitable Customers |
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Did you know that the customer profitability rate increases considerably over the life of a retained customer? In fact, the profits generated as a result of retaining a small percent of your most profitable customers is astonishing and we believe worth the investment. |
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Can you quantify the effect of repeat customers? |
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A five percentage point increase in customer retention in a typical company will increase profits by more than 25%, and growth by more than 100%! Most companies are feeling the dark side of these loyalty economics today. That is, their profits and growth are being devastated by customer retention - or lack there of. |
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How can repeat customers accelerate growth? |
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It is much easier to fill a bucket when it isn’t leaking. The typical Fortune 500 company, for example, has real annual growth of 2 ½%. If it retains 5% more of its customers each year, real growth will triple to 7 ½%.
With 80% of revenue usually gained from just 20% of your customer base, it is critical to business success that you not only maintain existing customer relationships, but nurture them.
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