What are the 10 reasons Businesses Fail?
How Important is Customer Retention?
In today’s changing economy, retaining your customers is critical to the success of your business. If you don’t give your customers a good reason to stay, your competitors will give them a reason to leave. Customer retention and satisfaction drive profits. Did you know that on average 80% of business sales come from only 20% of customers and clients? It is very important to keep that 20% happy.
Is Losing Just One Customer a Big Deal?
Regaining one “lost” customer is much more difficult and costly than simply keeping the person happy and loyal in the first place. Here are some statistics that might change your mind:
If you make an effort to remedy customer complaints, 82 - 95 % of them will stay with you.
For every customer who bothers to complain, there are 26 others who remain silent.
The average “wronged” customer will tell 8 -16 people
Each of these 8 -16 people will tell 5 more people (that’s 40 to 80 people from one complaint!)
91% of unhappy customers will NEVER purchase from you again
It costs 5 times more to attract a new customer than to keep a current one.
Each one of your customers has a circle of influence of 250 potential customers who could hear bad things about you!