Customer Retention vs. Customer Churn

What's the Difference?

Seek The Tangible Financial Advantage.

Retention:

Did You Know...

A 5% Increase in Customer Retention

Produces MORE Than a 25% Increase in Profit.

It's a Simple Matter of Your CAC (customer acquisition cost)

  • Return customers have established trust from you.

  • Return customers have established a relationship with you.

  • Return customers are more forgiving of your missteps

  • Return customers tend to buy more from a company over time.

  • As they do, your operating costs to acquire & serve them decline.

  • Return customers refer others to your company.

  • Return customers often pay a premium to continue to do business with you rather than switch to a competitor with whom they're neither familiar nor comfortable.

 
Churn*:
(*when customers stop doing business with a company)
Study after study shows that customer
acquisition costs, far exceed customer retention costs.
 
Generally, companies spend SEVEN TIMES more
on customer acquisition than customer retention.​
 
 Earning new business means working leads all
the way through the sales funnel, absorbing valuable 
marketing and sales resources throughout the process.
  • Churn impedes company growth as the business fights to gain new customers to replace the ones that left.
  • New customers take time to build up trust with you.
  • One misstep and a new customer will consider not returning.
  • New customers go through a learning curve getting familiar with your team, products, services, pricing structure, procedures, and advantages over the competition.
  • Critical time is wasted as profits lag while the new customer remains cautious to trust you before investing more $$ into your business.
 
 
 
A Comparison:
Dating vs Churn
Finding new customers, retaining those customers, losing those customers then finding replacement customers is a cycle that should sound familiar.  That's because it mirrors the process of dating!  It is after all, the same concept considering it focuses on the same principles:  
Action Steps Followed:
 
Isn't it Time You Turn Your Team's Attention 
to Keeping Your Current Customers
Happy Rather Than Starting Over
 Every....Single....DAY!
nOTHING TO SEE HERE...
 
                                      kEEP SCROLLING pLEASE...
Almost There Now.....
Contact

Bruce@InsightfulService.com

Specialized Training Facilitator / Speaker

847-886-9700

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