Customer retention is defined as a Why create a company’s ability to retain — for a given period — customers who have already made at least one purchase . ( Zendesk )
This type of retention requires an integrated strategy. The customer retention strategy must involve the entire organization and have the undisputed leading role of the marketing department and the sales force .
According to a report cited by the White House Office of Consumer Affairs, the probability of selling to a new customer is 5 to 20 percent, while the probability of selling to an existing customer is 60 to 70 percent.
There is a general consensus that
Customer retention increases revenue. According to a Gartner report , 75% of companies support this claim.
On the other hand, according to a report by Accenture , 80% of customers who change brands say they would not have made that decision if the company had implemented more actions to retain them.
This means that when a customer retention strategy works, it becomes a solid path to customer loyalty. And retaining customers is not the same as building customer loyalty.
Customer loyalty is the upper dataset stage of the sales funnel . At this level, the user not only consumes your products or services, but also promotes them spontaneously. This way, they become a brand ambassador .
The difference between customer Why create a
Loyalty and customer retention lies on the emotional level. A loyal customer establishes an emotional bond with the webinars, meetups, conferences on internet marketing for march 2020 brand, while a retained customer stays, but does not yet know exactly why.
Another substantial difference between loyal and retained customers is that the former prefers you over the competition, while the latter buys from you and your competitors without making a commitment to either.
Let’s say your business has a malaysia numbers list customer record of 700 at the beginning of the year.
During the twelve months of the year you manage to attract 950 new clients. Finally, at the end of the year the company has a record of 1,300 clients.