Every small business knows the importance of retaining customers - after all, it takes massive amounts of hard work, continuous communication, and hard-earned money and resources to win them in the first place, so it stands to reason that keeping them has to be a priority. With that in mind, here are a few interesting statistics on customer retention to get you focused on the job at hand!
- The probability of selling to an existing customer is 60-70%. The probability of selling to a new prospect is 5-20%.
- 80% percent of your future profits will come from just 20% of your existing customers.
- 65% percent of a company’s business comes from existing customers.
- 32% of executives say retaining existing customers is a priority.
- A typical small business will lose 15% of its customers each year.
- 27% of small business owners estimate that 11-20% of first-time customers don’t return to their business.
- It costs 5% more to acquire a new customer than it does to keep a current one.
- It costs 16x more to bring a new customer up to the same level as a current one.
- 82% of companies agree that retaining customers is cheaper to execute than acquisition.
As you can see, the impact of customer retention can be felt from your bottom line to your marketing tactics, cost of sales, and customer service. So the question is, are you taking your customer retention seriously enough?