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A customer saved is a customer earned -- actually a saved customer can be worth
up to five new customers!
One of the simplest ways of increasing customer profitability is to simply
increase customer retention. Increasing customer retention by just one or two
percent can have a dramatic impact on the overall profitability of your
customers base.
Retention = Profit
Genroe have developed tools that can estimate the value of improved retention to
your bottom line and support the justification of different types of retention
programmes.
That means that you can determine exactly how much you should invest in various
customers to optimise their value.
Acquisition is Good, Retention is Better
Companies still focus on acquisition and fail to develop and implement effective
retention programs to retain customers and unlock their maximum value. Research
also shows that acquiring a customer costs at least 5 times more than retaining
one.
But it's all too hard?
Regardless, many companies believe it is too difficult to implement customer
retention strategy for many reasons including departmental silos, lack of
senior management commitment and lack of resources.
We disagree!
We have proven in a range of industries (telecommunication, financial services,
insurance), in both large, listed and smaller companies that you can implement
customer retention strategies that substantially improve business
profitability.
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