CUSTOMER RETENTION

Create 10-15% Annual Revenue Growth Through Customer Retention

A strategic customer retention program is often the easiest way for an established business to achieve significant double-digit growth, year after year, even in difficult business conditions.  Most businesses can achieve this without having to spend a lot of money on marketing.

Building a business is not as easy as it used to be, and the trends causing this difficulty seem to be worsening as The Information Age progresses.  Increasing competition results in more marketing messages bombarding our buyers.  Most of these messages are indistinguishable from the others, and this causes poor performance.  Add these things together and it’s easy to see why creating customer loyalty has become so difficult.

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*The above image is a screenshot from the ART of Exponential Growth Calculator. Results vary depending on company specifics, but improved customer retention generally generally produces between from 11-24% annual revenue growth, and 14-30% annual growth in profit.

The Power of Strategic Customer Retention

“A 5% increase in customer retention can result in a 25-95% increase in profitability.”

— Frederick Reichheld, “The Loyalty Effect”, Harvard Business Review Press

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Customer Retention Challenges

According to research conducted by Forrester, in 2012 only 37% of companies earned a customer experience rating of “good” or “excellent.”  There’s a big disconnect between reality and what most companies believe, as over 60% of companies think they are doing a “good or excellent” job at customer service.

According to HelpScout, it takes 12 positive experiences to make up for one unresolved negative experience, and these negative experiences can have a crippling effect on your business.

Genesys estimates that $83 billion is lost by US businesses each year due to poor customer service.  You can’t afford to not have a strong customer retention program because the cost of losing your customers is so high.

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Customer Spending

Repeat customers spend 67% more than new customers and have larger average transaction values. -- Bain & Company

Customer Spending

Are you being found? And when you're found, are you seen as being unique or delivering more value than all of your online competition?

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Strategic Alignment

Organizations with tightly aligned sales and marketing functions enjoyed 36% higher customer retention rates. -- MarketingProfs

Strategic Alignment

Sellers today must be more creative in generating sales opportunities, more strategic with their value propositions, and more effective in educating prospects.

Strategic Customer Retention Pays Off

One of the most effective ways to gain control of your organization’s growth is to gain more control of the customers you already have.  This is where the Customer Retention Diamond™ comes into play, helping you achieve double-digit growth year after year, through strategic customer retention.

There are four quadrants to the Customer Retention Diamond™:  customer buying lifetime, customer purchase frequency, customer attrition, and customer reactivation.  Each plays a vital role in both a comprehensive customer retention program and in revenue generation.

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Objectives of Strategic Customer Retention

The Customer Retention Diamond™ makes the process of planning, executing, and measuring the success of your customer retention program more strategic, effective, and simple. Your customer retention strategy must achieve five objectives:
  1. It must be focused on producing measurable results in sales and profit.
  2. It must be comprehensive, covering all four quadrants of the Customer Retention Diamond™.
  3.  It must be simple enough to easily implement, measure, and manage.
  4. It must be flexible, so you can quickly make adjustments.
  5. It must create growth synergy, with all of the components of the program working together and supporting each other to maximize results.

Typical Client Results

These are some of the results our clients receive from our sales acceleration services:

  • Gain greater control of the growth of your company.
  • Reduce customer churn while building loyalty.
  • Significantly improve Customer Lifetime Value.
  • Win back lost customers and clients.
  • Dramatically increase sales and profit.
  • Generate more referrals and positive word-of-mouth.
Do these results interest you?

Explore the Customer Retention Diamond

Interact with the diamond to discover how strategic customer retention can help you improve customer loyalty and gain more control over the growth of your business.

Launch Presentation

Launch Presentation

How Effective Is Your Customer Retention Strategy

Are you a customer retention whiz?  Put your customer retention strategy and skills to the test!  This brief quiz will help you both understand your ability to recognize customer retention opportunities and create your own powerful customer retention strategy.

Does increasing sales, profit, and company value sound enticing?