Whenever a customer has a problem they want to speak with a real person. When another company promises a better experience at a lower price point, it’s a quick win for competitors to acquire new customers. Even though price is the greatest factor that influences churn, people are willing to stay if they are treated fairly. Ineffective service automation, such as limited access to customer support, is also causing customers to feel angry and frustrated. Topping the list are customers who feel poorly treated by companies and would prefer to stay loyal if they had a better customer experience. In CallMiner’s 2020 report on Customer Churn, they identified 3 key areas that drive customers away. What is causing customers to leave?Ĭustomers stop buying from a business for unique and personal reasons, but they tend to fall under a few similar categories. In this article, we share why and how customer retention is essential to growth, and we will also provide you with five tips and practical examples of how a CRM platform can help you carry out the ways to sell more to your existing customers. And yet, the reality is that 80% of marketing budgets are allocated to customer acquisition - despite acquisition costs increasing by more than 50% in the last 5 years!.A typical business has a defection rate of 10-30% per year.On average, companies lose 50% of their customers every 5 years.
When focusing on the importance of customer retention, it's worth adding that 82% of companies believe that customer retention is less costly than customer acquisition. The businesses that “get this” consciously invest in customer retention, because they see it as the biggest revenue driver, according to KPMG. Having an effective customer marketing strategy gives you the ability to identify, track and sell more to the customers who are most likely to become your long-term sources of revenue. You need to keep on trying and earn a customer's loyalty, continuously. The moment they feel like you don’t care about them or their business - they’ll find someone else to do business with.Īn even harsher truth is that, sooner or later, your customers may just … leave!īecause if you stop trying, your customers start feeling that you no longer care about them.
Put simply - if you take existing customers for granted, they will leave!Ĭustomers want to feel valued. The most common pitfall for businesses around the world is that they think that if they have a great product or service, then customer retention will follow naturally.Īnd, while this might be the case in some instances, the harsh truth is that it’s only a short term strategy. So, why do we keep on allocating most of our B2B marketing budgets on acquiring new customers? Customer acquisition vs. It’s a lot cheaper to keep existing customers than acquire new ones.Īnd according to Marketing Metrics, the success rate of selling to an existing customer is 60-70%, while the success rate of selling to a new customer is only 5-20%! To do this, they need to sell more, which, in turn, means – they need more clients.Īs a result, very often salespeople get so focused on gaining new customers that they fail to effectively address the need to retain the customers they already have. If you work in B2B sales, the number one priority is to find new ways to increase revenue.
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