Five customer retention statistics that will help you understand and plan your customer retention efforts.
Through our research, we find lots of interesting statistics that can be valuable in for presentations or reports, and more so planning your retention efforts. Here are five of the most significant stats we’ve uncovered recently.
Attracting a new customer costs 5X as much as keeping an existing one.
- Lee Resources 2010
A New North, we find this to be true as well. Our research and clients agree with the amount of spending on lead generation compared to retention, that dollar-for-dollar, customer retention has a higher return than lead acquisition.
Companies that prioritize customer experience generate 60% higher profits.
- Customer Thermometer, 2012
Seems like an obvious conclusion, but so many companies don’t think about the experience beyond the delivery of the goods. Think about Starbucks, Wegman’s, and Southwest for example. What they sell is available almost anywhere. It’s the experience and service that drive their profits.
Relevant emails drive 18X more revenue than broadcast emails
- Jupiter Research
As we enter a time when marketing can be more personal with less effort, marketers need to be aware and grow with the technology to increase the effectiveness of their campaigns. Relevancy is about conversation. Today it is more possible than ever to have multiple conversations at once, driven by technology.
Triggered Messages Click Rates 119% Higher Than “Business as Usual” Messages
- Epsilon Data Management, 2012
As we just mentioned, technology is allowing us to reach new levels of personalization and that includes specific timing. Having emails sent at the right time can generate more return than emails sent as “blanket” approaches to marketing.
Personalized emails improve conversion rates by 10%
- Aberdeen Group
This is not just a mail merge, but a continuation of the conversation held between you and your consumer. Personalization can increase the customer’s interaction, open rate, and willingness to have a dialog with you and continue their shopping experience.