Customer acquisition strategies get huge attention – after all, new customers are the lifeblood of any business. However, you have probably heard the stats before – it costs six to seven times more for an organization to acquire a new customer than to keep an existing one. So while you should never lose focus on acquiring new customers, don’t forget about the ones you currently have.
According to Bain & Company, just a slight increase of 5% in customer retention can result in a profit increase of 25% to 95%, and Gartner reports an increase of up to 125%. Now these are numbers worth paying attention to!
To Retain Your Existing Customers, You Need to Know Them
This goes without saying, but although many marketers understand this in theory, gaining that elusive 360-degree customer view can be somewhat elusive. Time and time again I hear from companies, “I have all this customer data, I just don’t know what to do with it!” The first step is to tackle this problem head-on by getting your data in order.
You may have any number of data sources sitting in spreadsheets, billing systems, customer service centers, email programs, and so on. One spreadsheet may contain names and …