We’ve all heard that organizations who increase customer retention rates by 5% can increase profits by as much as 95%, but did you know that a 2% increase in retention is similar to a 10% increase in costs? Or a 10% increase in customer retention levels can result in a 30% increase in the value of a company?
These statistics are mind-blowing and they go to show how much of an impact retaining customers can have on an organization as well as why it’s so important to want to keep customers coming back for more. However, the sad truth is that many organizations don’t focus on retention, but on acquiring new customers, which is much more costly. There needs to be a happy-medium because everyone wants loyal, long-term customers and also new customers to eventually become those long-term ones. You need to be strategic with how you go about this, but if done correctly, you will thrive.
Check out this infographic by Sparked for more stats on why companies don’t focus on retention and what the benefits are if they did.