GrowBiz Partners recognizes that Customer Retention is King and so should you. But Customer Retention Marketing or CRM has traditionally taken a backseat to acquisition efforts, as demonstrated by the fact that customer retention usually has either a smaller budget allocation or no budget allocation at all! And if this is true of your business, then you need to re-think your Retention Marketing.
Finding new customers is great, but keeping old ones and turning them into loyal buyers and advocates is even more important.
The following chart should help you decide what percentage of your marketing budget should be spent on acquiring new customers and retaining existing customers.
Click on chart to increase size.
Q: Sounds good, but what will it cost me?
You will pay for your Customer Retention Marketing by allocating a percentage of your marketing budget to customer retention. In other words, where you have a marketing budget, it will not cost you any more than what you are presently spending because you will allocate an appropriate percentage of that budget to customer retention. But even if it does cost more, it will be an investment in your customers. And given the fact that it costs 80% less to keep an existing customer than it costs to acquire a new one, your investment in your customers will mean a greater return on your investment.
And your ongoing monthly subscription will be an investment in your customers and will bring your customers back more often and turn many of them in Advocates for your business, thereby increasing your revenues and your profits.
It costs you approximately $250 for every customer you lose. To give you an idea of how much that means to you in revenue, let’s say you have 500 customers, and like most businesses, you lose about 20% of your customers annually. That is 100 customers at $250 = $25,000 in lost revenues. Even if you replace those 100 customers with new ones, you have not grown your business. So either way you look at it, you are losing $25,000 a year. You can’t afford not to outsource your CRM to GrowBiz Partners!
Let us show you how we can help you increase your customer retention by at least 5%. Contact us for an appointment.