Economic Value of Customer Retention

Relationship selling is critical to the development of life long customers. It is much easier and cheaper to retain the present customers than to try to attract new ones. A study conducted by Pricewaterhouse shows that a 2 percent increase in customer retention has the same profit impact as a 10 percent reduction in cost. Thus, relationship building would be a good first step in developing a customer retention program. This might include: periodically assessing customer needs and matching them with appropriate products, conducting periodic customer satisfaction research, and developing customer loyalty programs. Learn more at www.crmfirm.com