Todd at deBanked has written another great piece about merchant relationships.
Important factors Todd found that drive positive long-term relationships are:
A survey on B2B sales conducted by Invesp resulted in some pretty interestingly related insights:
- 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%.
By the numbers, it seems like a deliberate focus on renewals can provide immensely beneficial outcomes on the whole, but:
- 44% of companies admit they, “have a greater focus” on acquisition, while 18% have their primary focus on retention. The remaining 38% claim to have an equal focus.
Then, what is the primary driver of quality relationships and customer retention?
- 89% of businesses report their customers state that their user experience is the key factor in their loyalty.
What does “user experience” really mean?
Serve is the root word in Service. How are you serving your customers?
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