If you run an online business or e-commerce Benefits of Customer Retention store, you can easily calculate the benefits of customer retention. Some of the most valuable benefits include:
Generate Referrals : The benefits of having a loyal following extend far beyond your initial customers. Loyal customers are five times more likely to recommend your business to friends and family, which can increase your sales opportunities exponentially. This means that when you have a strong customer retention program, your business can thrive and you will have a balance between existing and new customers.
Leverage customer loyalty
You may assume that your regular customers brazil phone number data are likely to buy the same services and products or have much higher expectations. However, regular customers experiment with what they buy and have lower expectations. A regular customer is less likely to report things like support issues or shipping delays. According to Outbound Engine, they are also seven times more likely to try your new product line.
Increased order value : New customers tend to lower their order value, while repeat customers use larger shopping carts. Repeat customers spend 30% more than new customers.
Increase ROI
Since it’s easy to re-convert existing how marketing can help with talent recruitment and retention customers, a good customer retention plan can increase your ROI. In fact, according to Harvard Business Review, increasing your retention rate by just 5% can increase your profits from 25% to 95%.
Reduce Costs : Depending on your strategy and the products your company offers, the cost of acquiring new customers may be prohibitive. The cost of acquiring new customers is 25 times higher than retaining customers who have already won once. If you don’t want to spend money on lead generation, try focusing on customer retention as it helps control your sales and marketing budgets.
Improved Sales Success Rates
When you convert new customers, it can be phone number taiwan difficult, but when you sell to one of your existing customers, it tends to be much easier. According to Outbound Engine , the average success rate for converting new customers across various industries is around 5%-20%. In contrast, the success rate for upselling to existing customers is around 60%-70%.