Customer Retention Strategies For Practical Profitability
Customer retention is the percentage of customers who stick with a company over a specific amount of time. This is the opposite of the churn rate, which is how many people leave in a period of time. For businesses looking to navigate through difficult times, turning to keep current customers may have a bigger impact on the bottom line than finding new customers.
Other researchers found the cost of acquiring new consumers can be 5 to 25 times costlier than retaining existing customers. In addition, capturing new customers is only successful 5-20% of the time.
Everything points to higher customer retention as much easier and more profitable than focusing on new prospects.
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