Retain more customers

Never Underestimate the Value of Retention

Tangible value of current customer 

Research shows that it costs between five and seven times more to gain new customers than to get an existing customer to buy from you again. It does not matter in what sort of business you are in – current customers are always worth more than prospective ones. For those who feel that customer retention plays a relatively minor role in helping a company grow a healthy bottom line, here are a few statistics you might be interested in:

  • According to Bain and Co., a 5% increase in customer retention can increase a company’s profitability by 75%.
  • Gartner Group statistics tell us that 80% of your company’s future revenue will come from just 20% of your existing customers.
  • Still not sold on importance of customer retention? Some more proof: Harvard Business School report showcased that, on average, increasing customer retention rates by 5% increases profits by 25%-95%.

Listen and exceed

The main strategy behind retaining your existing customers is to put in place a continuous customer focus. This involves:

1. getting feedback from customers

2. putting that feedback into action so that you can delight them through your improved goods and services.

Put more simply, listen to customers and exceed their expectations. For help with the first part of this strategy – please contact us to discuss how Qualityo can help you to receive insightful feedback. The second part of your customer retention strategy – exceeding your customers’ expectations – is achieved by improving your business through the feedback you receive. Improved processes should lead to improved satisfaction levels.

We can advise you how to implement better standards of customer service using feedback tools. Please contact us to know more.