Do you know the value of loyal customers? Have you ever created a strategy built around keeping those customers while maintaining and building your relationship with them? Have you explored a customer retention strategy?
If not, we encourage you to do so. Retaining your current customer base is often referred to as the low-hanging fruit. What do we mean by this?
The fruit that hangs low is easily reachable, and it requires minimal effort to pick it. The same can be said for your current customers. They can be won or persuaded to stick around with little effort. Now, that doesn’t mean no effort.
Because you have to invest a little to get a lot, and we want to help you with your strategy, we’re going to look at customer retention stats, a study and best practices for 2016.
Customer Retention Stats
To drive home the importance of customer retention, here’s a list of stats:
- It costs 500% more to acquire a new customer than it does to keep a current one. ~Destination CRM
- It costs 16x more to bring a new customer up to the same level as a current one. ~Marketing Tech Blog
- It’s cheaper to retain a customer than to get a new one. ~Econsultancy
- The average repeat customer spends 67% more in months 31-36 of their relationship with a business than they do in months 0-6. ~Bain and Company
- 47% of customers would take their business to a competitor within a day of experiencing poor customer service. ~24/7
- 97% of consumers said they are somewhat likely to become more loyal to a company that implements their feedback. ~Apptentive
- 81% of consumers are more likely to continue doing business with brands that offer loyalty programs. ~Bond Brand Loyalty