If you are looking to generate more profit from your business then focus on retaining customers. Research by Bain & Co showed that a 5% increase in customer retention could lead to an increase in profit by up to 75%.
Many businesses are stuck on, what we at Grow Your Profit call, the Customer Acquisition Treadmill. They spend their hard earn profits chasing customers but fail to retaining them. After a lot of hard work they are back where they are started.
Here are 6 facts every business owner or CEO needs to be aware of proactively addressing. Benefits from such actions will lift profits, drive business growth and reduce issues within a business.
- 5% increase in customer retention leads to an increase in profit by up to 75%
- 80% of companies say they deliver ‘superior’ customer service; however, 8% of people think these same companies deliver ‘superior’ customer service. – Bain & Co.
- Attracting 1 new customer will cost you between 5 and 25 TIMES MORE than keeping an existing customer
- 82% leave because of a poor customer experience. (14% from dissatisfaction of the product or service and 68% because of poor attitude or indifference on the part of the service provider.)
- Australian businesses lose $720 per bad customer experience. – Ernst and Young
- 91% of customer who had a bad customer experience won’t be willing to do business with your company again.” – Glance
At Grow Your Profit we are very aware of these facts and heard many business owners complain about not having enough customers or even loyal customers.
The Grow Your Profit System Drives Customer Retention
This is why we have created the Grow Your Profit system. It helps business owners improve customer retention rates. We do this by focusing on creating consistently positive customer experiences, attracting the right customers and keeping them with awesome offers.
Too many businesses focus on attracting more customers. Now please do not think we do work with our clients to do this. We prefer to focus on attracting the right clients and ensuring that the experiences they have are positive. This then helps turn them into walk and talking advertising machines for your business.
We all know that word of mouth is the best form of advertising any business can have.
If you would like a free confidential discussion on how to lift your customer retention rate then please contact the team at Grow Your Profit on firstname.lastname@example.org or call Pat on 0438 474 758.