If you have ever ran any sort of promotion for your business, assuming that it was a successful promotion, you will probably have noticed a very definite spike in subscribers, sales or traffic during the special offer or event. However, all to often this is a short lived increase which trails off after the promotion. So how can you retain these new customers once the promo draws to its conclusion?
Is Customer Retention Really so Important?
If you are wondering whether or not it is important to focus on retention of these customers then you should know that just a 5% increase in your customer retention rates could boost your overall profitability by as much as 75%! That is a fairly substantial pay off for such a small change in retention. It is also worth noting that the average cost of attracting a new customer is going to be between 5 and 8 times more than the cost of holding on to a customer that you already have. These figures suggest that customer retention is indeed something that every business owner needs to consider very carefully.