Imagine TWO good companies, one has a CUSTOMER RETENTION rate (CRR) of 95%, the other 90%.
That means, the first firm loses 5% of their customers per year, and the 2nd firm’s leak is twice as large, 10% per year.
If both companies increase new customers at the SAME rate of 10% per year
Over 14-years the first firm will double in size, but the second will have NO real growth at all…
Such is the power of Customer Retention Marketing
How to…
Now is the time to Delight your Customers – not just satisfy them
And it’s as Simple as investing a few cents on an INSTANT GRATIFIATION Method of Showing Your Appreciation
Best of All…
Such small investments are usually quickly recouped from the profits you may not have had without them
Can you think of any reason why each
of your customers is not worth a
customer retention investment
of LESS than 35-cents?
There are other benefits to focusing on Customer Retention
- It saves you money on advertising
- It boosts your exposure
- It bonds your service to the 'upper-mind recall" of your customers
- It is estimated that it costs four to ten times as much to sell to a new customer as to an existing one
- Also, a typical satisfied customer will tell eight to ten people about a favourable experience
- Your loyal customers are less receptive to competitive messages
- Your loyal customers also forgive mistakes easier
- Your loyal customers are easier for add-on sales
Therefore, doesn't it make good business sense to put more effort towards maintaining your Customer Retention Marketing Program.
A Personalised mint or chocolate can not only help brand your product or service with your name and logo, but the mint taste also adds to a memorable positive experience that bonds your brand into that all important “Top of mind recall” marketing gurus aim for.
This will go a long way towards building your customer goodwill since it creates a keen sense of loyalty towards your business.
How Does It Work? (Source, National Business Institute)
"Because Customers are 'magnetised' to feel-good experiences, they become psychologically bonded towards continuing to deal with businesses that provide them with positive, inspirational encounters... Therefore, doesn’t it make sense to provide your customers with a positive feel-good Shopping Experience that will help keep them returning to your business, rather than running to others"
It's a bit like training dolphins really....MARKETING DISCOVERY FROM DOLPHINS
“Because Human Beings are "wired" to feel-good experiences, they become naturally bonded towards continuing to deal with businesses that make them feel Appreciated
Older Loyalty schemes are having less effect on buyers who are now looking for Instant Gratification schemes
Therefore, doesn’t it make good business sense to provide them with an INSTANT and positive ‘feel-good’ Buying Experience that will help keep them returning to your business, rather than running to others?”
Principal
National Business Institute