ten staggering statistics on customer loyalty and retention

Ten Staggering

Statistics

on Customer Loyalty

and Retention

…and how they affect you!

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We all know customer loyalty and retention drive…

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We all know customer loyalty and retention drive…

REVENUE

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We all know customer loyalty and retention drive…

REVENUEREFFERALS

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We all know customer loyalty and retention drive…

REVENUEREFFERALSREALLY HAPPY

BOSSES

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Customer loyalty and retention makes me really

happy!

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rsBUT…

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rsWhere are the stats to

prove it?

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Here are ten Staggering Statistics on Customer Loyalty and Retention…and how they affect you!

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According to Forrest Research…

It costs 5 times more to acquire new customers than it does to keep current ones.

source: bit.ly/fdsxzx

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That’s a lot of coin…

Curren

t Cust

omer

New Cust

omer

Acquisition CostRetention Cost

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Instead of vying for new customers, focus your efforts on satisfying the customers you already have.*

*It’s best to do both

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When you satisfy your customers, you’ll reduce their churn rate (also known as attrition or turnover).

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rsCan you guess how much your profits will go up by reducing churn even 5%?

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Not 5%...

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rs Or 10%...

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rsOr even 20%... (good guess)

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According to the authors of Leading on the Edge of Chaos…

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Reducing customer churn by 5% can increase profits 25-125%

Source: http://bit.ly/Vwk3DJ

Year 1

Year 2

Year 3

Year 4

Profits with 5% churn reduction (high estima-tion) Profits with 5% churn reduction (low estimate)

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Convinced Loyalty Matters Yet?

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According to Gartner,

“80% of your company’s future revenue will come from just 20% of your existing customers.”

Source: http://onforb.es/Q94Id5

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Source: http://onforb.es/Q94Id5

Future Profits

Current CustomersFuture Customers

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Additionally, according to Marketing Metrics,

“The probability of selling to an existing customer is 60 – 70%. The probability of selling to a new prospect is 5-20%.”

Source: http://bit.ly/WAaE1x

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If a customer is unsatisfied, how does it affect your business?

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rs According to Lee Resource, “91% of unhappy customers will not willingly do business with your organization again.”

Source: http://bit.ly/d5XsEe

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rsAND

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rs “For every customer complaint, there are 26 other customers who have remained silent.”

Source: http://bit.ly/d5XsEe

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Silence isNot Golden

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Did you know that most customer satisfaction isn’t based on the product or service itself?

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rs According to Forum Corporation Research,

“Almost 70% of the identifiable reasons why customers left typical companies had nothing to do with the product. The prevailing reason for switching was poor quality of service.”

Source: http://bit.ly/f5L3Ls

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rsBusiness only attribute 21% of customer churn to poor customer service (it’s actually 70%).

Source: http://bit.ly/WDqg1D

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rsMany companies are now using social media as a great tool to aid customer communication.

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According to Sitel, “social customer service adoption is being driven by the younger generation. 15% of 16-24 year olds prefer social media.”

Source: http://bit.ly/LfpcdP

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With social, the stakes are higher…

According to American Express, “Social customer will tell an average of 42 people about a good customer experience, and they will tell an average of 53 others about a bad customer experience.”

Source: http://bit.ly/LfpcdP

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From social media monitoring to website messaging, there are many tools to drive customer happiness through communication.

The important thing is to always stay in touch with customers to understand their point of view.

Than

k Yo

u!

We hope you enjoyed this presentation. If you found our slideshow helpful, let us know by tweeting it and sharing it all over the web.

Abou

t Us

Apptegic enables you to increase revenue, engagement, and customer success by automatically communicating relevant messages to your website visitors and web app users based off of real-time usage data.

Learn more at www.Apptegic.com

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We’d also like to thank the following Flickr users for being awesome…

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In order of appearance:Racecar http://www.flickr.com/photos/psykotrooper/7529553538/Businessmanhttp://www.flickr.com/photos/aye_shamus/2676763850/Birdhttp://www.flickr.com/photos/hojusaram/2274489068/Swinghttp://www.flickr.com/photos/amotherslens/7856800372/Pouthttp://www.flickr.com/photos/imagesbywestfall/3606314694/Manhttp://www.flickr.com/photos/toestubber/2729767567/Questionhttp://www.flickr.com/photos/oberazzi/318947873/Social Mediahttp://www.flickr.com/photos/kdonovan_gaddy/4314364949/Megaphonehttp://www.flickr.com/photos/ari/2211074818Thank Youhttp://www.flickr.com/photos/rosengrant/3986742210/Guitaristhttp://www.flickr.com/photos/emilyrawlings/4763023078/

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in u

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