Keeping existing customers happy has tangible benefits for your business. We talk to entrepreneurs and their loyal customers about this important relationship
As a small business, it’s understandable to want to shout about your company to as many people as possible. And it’s easy to get caught up in the minutiae of cash flow and generating revenue at the expense of customer service.
But most entrepreneurs will have heard statistics about the expense of acquiring a new customer compared with retaining an existing one – studies estimate it can be between five and 25 times more expensive to bag a new customer. Research by Frederick Reichheld of Bain & Company suggests that increasing customer retention rates by 5% could in turn, increase your profits by between 25% and 95%.
Continue reading…
Source: Guardian