Saturday, January 16, 2010

Retaining customers vs acquiring new customers

Most marketing theory and practice focuses on attracting new customers rather than on retaining existing ones, pre selling and selling rather than caring for the customer after the sale.
Don’t make this common mistake because acquiring new customers can cost five times more than the costs involved in satisfying and retaining current customers.
The key to customer retention is customer satisfaction because a highly satisfied customer:
- Stays loyal longer
- Buys more as you introduce new products and services
- Is more likely to tell their friends and family about your business
- Pays less attention to competing brands and advertising
- Is less price sensitive
- Offers product or service ideas to improve your business
- Costs less to serve than new customers.