Customer Retention: - in markets with increasing competition it may cost 5 times more to attract new customers than it would to retain current customers, as direct or offensive marketing requires much more extensive resources to cause defection from competitors - a 5% improvement in customer retention can cause an increase in profitability of between 25 and 85 percent (in terms of net present value) depending on the industry. - engaged customers generate 1.7 times more revenue than normal customers, while having engaged employees and engaged customers returns a revenue gain of 3.4 times the norm. [factors broken down in 1st comment below]
Posted on: Thu, 04 Dec 2014 09:31:15 +0000
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