It costs five times more to attract a new customer, than to keep an existing one.
Increasing customer retention rates by 5% increases profits by up to 95%.
Existing customers spend up to 31% more in comparison to new customers.
The probability of selling to an existing customer is 60-70%. New prospects? 5-20%.
Churn is by far the most influential factor to a company’s survival together with profitability and the number of net new customers. While customer acquisition fluctuates month over month, churn is a constant figure. That means that as you grow, and your growth inevitably slows down, churn will eat at your margins making yearly growth harder while making your company an ideal target for market disruption.
Most companies start to rely heavily on discounting the repeat purchases of their products, eroding their margins while at the same time needing those very same margins to invest in a better customer experience. Meaning that customers remain “unhappy” and very prone to leaving.
Companies often spend their entire budget on the implementation of new tools, software, and even temporary staff. While these “projects” certainly impact the baseline, they don’t always give the hoped for end result without a proven strategy.
Consider this before starting these type of projects:
Will, what we’re planning in itself, impact the customer experience so extensively that it will improve the perception our customers have of us as a company?
Years ago people bought encyclopedias, perhaps you even have one on a shelf somewhere, but with the rise of the internet Wikipedia, a totally free alternative arose effectively putting an entire industry out of business. Now the competitors you’re facing today might not seem so fierce, but are you really willing to roll the dice on the future of your company?
We’ve worked hard to compile an extensive audit that helps us to identify “drivers of churn” that exist in your organization, we’ll look at everything in your customer journey, every department, every process, every interface, and every tool that’s used to interact with your customers. And not only that, we actually go and talk to your current and (ex-) customers to check what their questions, qualms are when talking about your company, your products & your services.
After the audit, it only makes sense that you get a full situation report where the key areas of improvement are listed. However, we’ll also define for you a clear plan of action on how to prioritize these actions and what strategic changes you can make to the way you interact with customers to that actually make an impact.
With a clearly defined roadmap, you’re ready to start reducing your churn then and there, but of course, you can count on us to provide you with continued (on-site) support, you can count on our own team of implementation experts to help you realize your goals.
Our consultants are already helping a lot of other B2B companies, just like you, to balance the cost-value equation while at the same time creating customer intimacy.
Request an office hour consultation to get started!