A short YouTube talk (by Daniel Rosen) arguing for prioritizing customer retention: retained customers spend more, refer others, and can become influential advocates even after issues are resolved. Cites a Harvard Business Review finding that increasing customer retention by 5% increases revenue by between 25% and 95%.
Between 25% and 95%.
Just because they have an issue with it doesn't mean you can't recover. And some of the customers who I've had the biggest issues with are the biggest influencers for my business. Why? Because we kind of got the egos out the way and we kind of know exactly who's who at this particular point. This is the Harvard Business Review reports that increasing customer retention by 5% increase your actual revenue anywhere between 25 and 95%. Just that simple. So you always want to be making sure that you are retaining your customers, taking care of your customers that in your cycle. Why? Because they're going to spend more revenue with you and actually they're going to refer more customers to you and they're going to be more loyal to your actual process and your program.
