Why don't all organizations focus more on customer retention? I don't know, but it is a mistake. Let's take the example of one customer and the potential value they represent to your organization:
- A customer buys an initial product
- The customer then buys the initial product more frequently
- The customer then buys additional, higher margin products
- The customer then tells his/her friends and colleagues and refers other customers to your products
- The new customers then buy the initial product (now go to step #2)
The end result is that you grow your business, your market share increases and you price products higher, so your profitability increases. You also create a cycle of constant growth through customer retention.
These dramatic results stem from focusing on the retention of one customer. Do you see the value yet?
Tune in tomorrow to find out the seven keys to customer retention and find out how to unlock this exponential value your customers offer.