As we continue to work with clients that are seeking to grow their businesses, we emphasize the importance of having a client retention strategy to complement the company’s sales strategy. Think about it, companies spend an outrageous amount of money acquiring new clients, yet few focus on what it will take to retain that client beyond the initial contract term.
Why is that?
We believe that most companies are so focused on winning new business that they fail to see the value of nurturing the relationships they have with their existing clients.
Data released by Marketing Wizdom supports our assumption. It states, “The average business loses around 20% of its customers annually simply by failing to attend to customer relationships.”
No matter the size of your business, losing a customer is costly; not to mention the negative impact it has on your company’s reputation. Furthermore, losing a customer means that you lose the opportunity for growth with that customer.
In a survey conducted by Invesp, it was determined that, “the probability of selling to an existing customer is 60-70%, while the probability of selling to a new prospect is 5%-20%.”
We rest our case.
Check out the infographic provided by the Data and Marketing Association to study additional data that emphasizes the importance of having a customer retention strategy. Need some help creating your customer retention strategy? That’s what we’re here for. Click here to schedule your free discovery call.