Client Retention is Very Profitable

If you’re like many businesses you spend most of your marketing time and money on securing new clients and customers. But statistics say that 60% of your revenue is coming from existing accounts. Don’t believe me…go ahead and check your sales from 2005 and see what percentage of sales came from repeat customers versus new ones and I bet you’ll be surprised (yes, I did this and I was surprised too…stats don’t lie!)

Now look at your marketing budget. It’s probably out of whack. The good news is that you don’t have to spend 60% of marketing dollars to retain customers, but you better have a specific strategy to keep loyal customers or you may be setting them up to be wooed away by competitors that are spending most of their dollars on acquiring new customers, maybe from you!

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Client Retention is Very Profitable

If you’re like many businesses you spend most of your marketing time and money on securing new clients and customers. But statistics say that 60% of your revenue is coming from existing accounts. Don’t believe me…go ahead and check your sales from 2005 and see what percentage of sales came from repeat customers versus new ones and I bet you’ll be surprised (yes, I did this and I was surprised too…stats don’t lie!)

Now look at your marketing budget. It’s probably out of whack. The good news is that you don’t have to spend 60% of marketing dollars to retain customers, but you better have a specific strategy to keep loyal customers or you may be setting them up to be wooed away by competitors that are spending most of their dollars on acquiring new customers, maybe from you!

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