28 Jun Customer retention is a cost effective and profitable strategy
Question
Customer Retention Strategies
Customer retention is a cost effective and profitable strategy. In fact, research has discovered:
Repeat customers spend 33% more than new customers.
Referrals among repeat customers are 107% greater than non-customers.
It costs six times more to sell something to a prospect than to sell that same thing to a customer.
Given these numbers, wouldn’t it seem logical for most companies to spend most of their marketing dollars on customer retention and repeat customers? Yet, that doesn’t seem to be the case with many companies. It seems most marketing and sales campaigns are designed for the new customer.
A major pet peeve of mine is wireless telephone companies. New customers who sign a new contract are given a large rebate or even a free cellular telephone; yet current customers whose contracts have not expired have the privilege of paying full price for new phones. This seems like a formula for value migration and is a factor in the intense rivalry between the major players in the industry.
QUESTION:
Shouldn’t we rethink our marketing and sales strategies given the persuasive research that finds it’s five times more profitable to spend marketing and advertising dollars to retain current customers than it is to acquire new customers?
Do you feel it isn’t happening as much as it could or should? Why or why not?
How does your company approach this issue?
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.