If you increase your customer retention rate by 10%, you can add 30% to your margin. Plus, keeping a client costs five times less than finding a new one. So can you really afford not to?
Manchester, UK (PRWEB UK) 28 August 2013
Keeping an existing client or customer costs five times less than finding a new one, and is one of the main reasons why companies should take steps to improve their retention levels, Jack Bedell-Pearce has said in a new article.
Bedell-Pearce, who is the newest Find the Edge Expert Panellist, uses his first post on the site to explain the reasons why businesses should go the extra mile to convince their customers not to leave.
He said: “You probably rely on a CRM system to keep your data and contacts, but do you tap into its ability to make you money?
“If you increase your customer retention rate by 10%, you can add 30% to your margin. Plus, keeping a client costs five times less than finding a new one. So can you really afford not to?”
Bedell-Pearce goes on to explain various strategies businesses can use to keep their customers and clients on board.
These include conducting – and listening to the results of – surveys, considering whether it’s worth making a loss to keep certain customers, and ensuring relationships are formed with a number of contacts at a client’s business, in case the primary contact moves on.
He also suggests companies should take the opportunity to cross-sell and up-sell to existing customers.
Bedell-Pearce said: “Why not sell an additional product or service to an existing client?
“Collect information about your clients’ businesses, and then you can make educated suggestions about other products and services which might be useful to them.
“Also consider how many of your clients have contacts in their address books who may need your services. Introduce a simple ‘reward on referral’ scheme in order to sell without leaving your desk.”
The article can be read in full here: http://www.findtheedge.com/product-service/customer-loyalty/7-ways-to-generate-more-business-from-your-crm.
Jack Bedell-Pearce is the latest business leader to become a Find the Edge Expert Panellist. He is currently responsible for the day-to-day running of 4D Data Centres, and the management of the senior technical and administration teams. More about him can be read here: http://www.findtheedge.com/expert-panelist/jack-bedell-pearce.
Kenny Goodman, founder of Find the Edge, said: “Jack puts together a very convincing argument explaining why we should think hard before we allow customers and clients to walk away.
“We look forward to reading more from Jack on Find the Edge in the future.”
Find the Edge is a website designed to allow business leaders to share their insight and knowledge with other members of the community.