It's cheaper to keep 'em

Keeping customers is clearly a business imperative; without customers you don’t have a business. For some companies keeping customers and maintaining their loyalty is a daily challenge. If you’re just starting on a customer retention strategy, it’s easy to assume that retention rates are all about customer satisfaction, but you’d be wrong.   

According to Jack Trout, author of ‘Differentiate or Die’:
- More than 40% of customers who claimed to be satisfied switched suppliers without looking back;
- 89% of people who owned cars from a certain manufacturer said they were very satisfied and 67% said that they intended to purchase another car from that manufacturer;
- Fewer than 20% actually did so.

The real indicator of customer retention isn’t satisfaction, it’s ACTION. Repeat business, buying additional product or services, recommendations, customer willingness to pay a premium, how often they buy – these are what define customer retention. And they’re easy to quantify. 

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