Never underestimate the importance of customer retention. The cost to attract a new customer is approximately five times greater than the cost to retain a customer. Consider this fact every time your company receives a complaint or your customer chooses to do business elsewhere. Businesses with a high customer retention rate are more profitable than businesses that rely solely on attracting new customers.

Attracting a new customer requires time, money and considerable effort.  Retaining an existing customer typically only requires an ongoing commitment to customer satisfaction. That’s not to say that customer retention is easy or inexpensive. But, compared to attracting a new customer, it is surely a bargain. Customer satisfaction begins with trust, and one must earn trust. It takes time for customers to trust that they will receive quality products and service. Not just on their initial experience with your company, but every time they do business with your company.

Everyone knows satisfied customers purchase more overtime, but it’s easy to overlook the value in referrals…Continue Reading