3 Ways to Increase Customer Retention, Boost Profits, from Customer Think.
We all know that 20% of our existing customers generate 80% of profits. However, the customer retention efforts of many companies still leave a lot to be desired.
According to a report by the Harvard Business Review/Bain & Company, “increasing customer retention rates by 5% increases profits by 25% to 95%.”
Additionally in a Retention Science study it was noted that:
- Advanced customer lifecycle metrics are being adopted slowly with only 23% of marketers tracking the rate at which their customers churn, and under 40% tracking customer lifetime value.
- 70% believe that their retention marketing efforts are only average, poor, or need improvement.
So, what should companies do to improve customer retention? Here are three actions that can help: