Benefits of Customer Retention: Statistics

Filed Under Client Retention

1. Acquiring new customers can cost five times more than satisfying and retaining current customers

2. A 2% increase in customer retention has the same effect on profits as cutting costs by 10%

3. The average company loses 10% of its customers each year

4. A 5% reduction in customer defection rate can increase profits by 25-125%, depending on the industry

5. The customer profitability rate tends to increase over the life of a retained customer

6. Companies can boost profits anywhere from 25 to 125% by retaining merely 5% more existing customers.

7. Only one out of 25 dissatisfied customers will express dissatisfaction.

8. Happy customers tell 4 to 5 others of their positive experience. Dissatisfied customers tell 9 to 12 how bad it was.

9. Two-thirds of customers do not feel valued by those serving them.

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I specialize in creating customized marketing solutions for small business. Contact me at georgann at catchphrasemarketing dot com, or call me at 888-494-8445 to discuss how you can get more clients and increase profitability without increasing marketing expenses. Yes, you really CAN have it all!

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