Ten Staggering Statistics on Customer Loyalty and Retention


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Here are Ten Staggering Statistics on Customer Loyalty and Retention and information on how they affect your business.

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Ten Staggering Statistics on Customer Loyalty and Retention

  1. 1. We all know customer loyalty and retention drive…
  2. 2. We all know customer loyalty and retention drive… REVENUE
  3. 3. We all know customer loyalty and retention drive… REVENUE REFFERALS
  4. 4. We all know customer loyalty and retention drive… REVENUE REFFERALS REALLY HAPPY BOSSES
  5. 5. Customer loyalty and retention makes me really happy!
  6. 6. BUT…
  7. 7. Where are the stats to prove it?
  8. 8. Here are ten Staggering Statistics on Customer Loyalty and Retention …and how they affect you!
  9. 9. According to Forrest Research… It costs 5 times more to acquire new customers than it does to keep current ones. source: bit.ly/fdsxzx
  10. 10. That’s a lot of coin… Current Customer New Customer Acquisition Cost Retention Cost
  11. 11. Instead of vying for new customers, focus your efforts on satisfying the customers you already have.* *It’s best to do both
  12. 12. When you satisfy your customers, you’ll reduce their churn rate (also known as attrition or turnover).
  13. 13. Can you guess how much your profits will go up by reducing churn even 5%?
  14. 14. Not 5%...
  15. 15. Or 10%...
  16. 16. Or even 20%... (good guess)
  17. 17. According to the authors of Leading on the Edge of Chaos…
  18. 18. Reducing customer churn by 5% can increase profits 25-125% Source: http://bit.ly/Vwk3DJ Year 1 Year 2 Year 3 Year 4 Profits with 5% churn reduction (high estimation) Profits with 5% churn reduction (low estimate) Profits with typical churn
  19. 19. Convinced Loyalty Matters Yet?
  20. 20. According to Gartner, “80% of your company’s future revenue will come from just 20% of your existing customers.” Source: http://onforb.es/Q94Id5
  21. 21. Source: http://onforb.es/Q94Id5 Future Profits Current Customers Future Customers
  22. 22. Additionally, according to Marketing Metrics, “The probability of selling to an existing customer is 60 – 70%. The probability of selling to a new prospect is 5-20%.” Source: http://bit.ly/WAaE1x
  23. 23. If a customer is unsatisfied, how does it affect your business?
  24. 24. According to Lee Resource, “91% of unhappy customers will not willingly do business with your organization again.” Source: http://bit.ly/d5XsEe
  25. 25. AND
  26. 26. “For every customer complaint, there are 26 other customers who have remained silent.” Source: http://bit.ly/d5XsEe
  27. 27. Silence is Not Golden
  28. 28. Did you know that most customer satisfaction isn’t based on the product or service itself?
  29. 29. According to Forum Corporation Research, “Almost 70% of the identifiable reasons why customers left typical companies had nothing to do with the product. The prevailing reason for switching was poor quality of service.” Source: http://bit.ly/f5L3Ls
  30. 30. Business only attribute 21% of customer churn to poor customer service (it’s actually 70%). Source: http://bit.ly/WDqg1D
  31. 31. Many companies are now using social media as a great tool to aid customer communication.
  32. 32. According to Sitel, “social customer service adoption is being driven by the younger generation. 15% of 16-24 year olds prefer social media.” Source: http://bit.ly/LfpcdP
  33. 33. With social, the stakes are higher… According to American Express, “Social customer will tell an average of 42 people about a good customer experience, and they will tell an average of 53 others about a bad customer experience.” Source: http://bit.ly/LfpcdP
  34. 34. From social media monitoring to website messaging, there are many tools to drive customer happiness through communication. The important thing is to always stay in touch with customers to understand their point of view.
  35. 35. We hope you enjoyed this presentation. If you found our slideshow helpful, let us know by tweeting it and sharing it all over the web.
  36. 36. Apptegic enables you to increase revenue, engagement, and customer success by automatically communicating relevant messages to your website visitors and web app users based off of real-time usage data. Learn more at www.Apptegic.com
  37. 37. We’d also like to thank the following Flickr users for being awesome…
  38. 38. In order of appearance: Racecar http://www.flickr.com/photos/psykotrooper/7529553538/ Businessman http://www.flickr.com/photos/aye_shamus/2676763850/ Bird http://www.flickr.com/photos/hojusaram/2274489068/ Swing http://www.flickr.com/photos/amotherslens/7856800372/ Pout http://www.flickr.com/photos/imagesbywestfall/3606314694/ Man http://www.flickr.com/photos/toestubber/2729767567/ Question http://www.flickr.com/photos/oberazzi/318947873/ Social Media http://www.flickr.com/photos/kdonovan_gaddy/4314364949/ Megaphone http://www.flickr.com/photos/ari/2211074818 Thank You http://www.flickr.com/photos/rosengrant/3986742210/ Guitarist http://www.flickr.com/photos/emilyrawlings/4763023078/
  39. 39. www.Apptegic.com