This month we have been talking about customer retention. In this webinar we discuss data that we found from other service industries about the cost of customer churn (or the value of customer retention). Everyone knows that it is more expensive to find new customers than keep the ones you have, but many companies aren't really committed to customer retention.
Some data from Get Satisfaction shows that most marketing organizations spend 62% of their resources on finding new customers and only 20% on keeping the ones that they have. If you aren't careful and customer churn gets out of control, you have to run faster and faster just to keep your revenue at the same place. That isn't fun.
We believe that customer retention is a direct result of good account management. Account management starts with the sale and continues through to every interaction you have with the customer. You'll be amazed at how many people quit as customers because a company didn't respond to their issues. We provide our guidelines for good account management.