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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)
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Return customers have established trust from you.
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Return customers have established a relationship with you.
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Return customers are more forgiving of your missteps
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Return customers tend to buy more from a company over time.
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As they do, your operating costs to acquire & serve them decline.
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Return customers refer others to your company.
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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.
Anchor 1
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.
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Churn impedes company growth as the business fights to gain new customers to replace the ones that left.
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New customers take time to build up trust with you.
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One misstep and a new customer will consider not returning.
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New customers go through a learning curve getting familiar with your team, products, services, pricing structure, procedures, and advantages over the competition.
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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 than 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...
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Almost There Now.....
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