Customer retention is not only a cost effective and profitable strategy, but in today's business world it's necessary. This is especially true when you remember that 80% of your sales come from 20% of your customer and clients. Taking these statistics into consideration I wonder why most marketing and sales campaigns are designed for the new customer.
Perhaps we need to rethink our marketing and sales strategies, after all many experts will tell you that it's five times more profitable to spend marketing and advertising dollars to retain current customers than it is to acquire new customers. In years past the importance of focusing on customer retention was not as important, stickiness came naturally. We shopped in our neighborhood shops and our corner grocery stores. We had a personal connection with our service providers and the thought of shopping at another store would have never crossed our minds.
That has all changed now. Our stores our larger, the majority of the sales personnel don't know that you even exist. Not to mention that now we have the convenience of the internet and do a large portion of our shopping online, where you are known by your email address. As a result, customer loyalty has disappeared and large corporations and virtual storefronts are unable to ask the millions of disloyal customers what caused them to stray.
Perhaps we need to rethink our marketing and sales strategies, after all many experts will tell you that it's five times more profitable to spend marketing and advertising dollars to retain current customers than it is to acquire new customers. In years past the importance of focusing on customer retention was not as important, stickiness came naturally. We shopped in our neighborhood shops and our corner grocery stores. We had a personal connection with our service providers and the thought of shopping at another store would have never crossed our minds.
That has all changed now. Our stores our larger, the majority of the sales personnel don't know that you even exist. Not to mention that now we have the convenience of the internet and do a large portion of our shopping online, where you are known by your email address. As a result, customer loyalty has disappeared and large corporations and virtual storefronts are unable to ask the millions of disloyal customers what caused them to stray.