In The Revenue is in the Relationship, we found that:
- Acquiring a new customer is 5-7x as expensive as retaining an existing customer.
- The success rate of selling to a customer you already have is 60-70%, while the success rate of selling to a new customer is 5-20%.
- Increasing customer retention rates by 5% can increase profits by 25-95%.
Customer retention was most driven by:
- 89% of businesses report their customers state that their user experience is the key factor in their loyalty.
The user experience is essentially customer service, how we serve the customer (continually).
What’s the riskiest assumption in all of this?