Four of Our Favorite Blogs on the Importance of Customer Retention
The season of thankfulness is upon us, the time for gathering around tables of food with friends and family. As a business owner, this time of year provides the perfect opportunity to show your thanks for your customers, those who keep you in business and help to put that food on your tables.
Over the past few years, we have talked about the importance of customer retention several times. In celebration of the holiday season, we have compiled several of our favorite blogs on the topic to give you tips on demonstrating your appreciation for your customers and clients.
1. Why Your Small Business Can't Afford to Ignore Customer Retention
Originally published by IMA on August 15, 2012.
Customer retention is critical for the success of every small businesses. Experts estimate that acquiring a new customer can be up to 10 times more expensive than keeping a current one, and established clients tend to contribute about 67% more money towards your bottom line than a new buyer.
While nurturing leads into clients to increase your reach is important, every small business needs to understand that customer retention is critical. Even if your marketing budget is limited, you should focus on directing funds towards retention.
2. Client Retention Tactics: How is YOUR Client Happiness Index?
Originally published by IMA on May 22, 2015.
"Increasing customer retention rates by 5% increases profits by 25% to 95%."- Reicheld & Schefter, Harvard Business School
Have you ever been shocked to see a client discontinue their services with your firm?
Client retention strategy is critical in any line of business. It doe
sn’t matter if you’re B2C, B2B, or B2G. Gartner research has found that companies that prioritize customer experience have 60% higher profits than their peers.Even more importantly, customer experience investments have a 25% higher return than pure sales and marketing to existing clientele.
Read more on the importance of client retention strategy for agencies, SaaS organizations, professional services firms, and other companies who operate based on recurring revenue and lasting relationships.
3. The Pros and Cons of Real-world vs. Online Rewards in Customer Loyalty Programs
Originally published by IMA on November 29, 2014.
Competition for customer loyalty remains as fierce as ever. Last year, we cited a report from the Huffington Post stating that 70% of the world's 2,000 largest companies would be expected to use some type of loyalty rewards program by 2014.
One way retailers and other #SMBs are staying competitive is through digital rewards for customers. Despite the rising digitalization of everything around us, is digital always the best way to go when it comes to establishing loyalty rewards programs?
Clark Buckner of TechnologyAdvice.com spoke with several loyalty program experts to get their input on the tangible vs. digital rewards debate. He shared his interview with us in this blog post.
4. Why Customer Revenue is Critical to Recurring Revenue Businesses
Originally published by IMA on May 30, 2015.
Acquiring new customers isn’t just difficult and competitive for many agencies, SaaS organizations, and professional services providers. It’s also incredibly expensive, and probably not the smartest place to invest your energy. Getting into a pattern of relying on new revenue, especially in a recurring revenue business model, isn’t just inefficient. It could actually lead your organization to failure.
Venture capitalist David Skok has stated that the second most common reason startups go under is a failure to “monetize” their existing customers. This requires organizations to master customer relationship management, customer referrals, and build loyalty-based relationships. Even more commonly, too many organizations don’t succeed at the most basic calculation of all: the cost of customer acquisition (CoCA).
On behalf of the entire team at Inbound Marketing Agents, we say "Thank you!" for reading and sharing this blog.