Some encouraging data on retention:
One, repeat customers are worth up to 10 times as much as new ones, as reported by the White House Office of Consumer Affairs.
Business consulting firm Bain and Company claims that an increase of just 5% in customer retention can increase profits by over 25%.
When MBNA America, a credit card company based in Delaware, halved its churn rate of 10% – without making any acquisitions – profits increased 16 times, according to a test conducted by the Harvard Business Review.
Many customers leave for the following reasons:
Repeatedly contacting a business for the same issue (91%), and explaining it to multiple customer service agents (89%).
Failure to follow through on assurances (84%).
+ Discontinuities across channels (58%).