Many companies find themselves focusing only on adding new customers. However, ignoring customer attrition could eventually lead to the demise of any great company. Customer Retention is incredibly important for growing a sustainable business. In a recent Harvard Business School research article The Economics of E-Loyalty, a 5% increase in customer retention can increase a company’s profitability by 75%.
If those numbers don’t impress you, the article 5 Great Ways to Keep Customers Coming Back Online, states that Gartner Group statistics tell us that 80% of your company’s future revenue will come from just 20% of your existing customers. The fact that customer profitability tends to increase over the life of a retained customer is added incentive for businesses to allocate more resources to sharpening their customer retention strategies.