As we get closer to the end of summer, more and more companies are starting to put together their 2011 plans, including budgets.
For all of you, I have one piece of advice – start off by figuring out how you will increase customer retention by 5%.
Why?
The fact is that a 5% improvement in customer retention rates will yield between a 25 to 100% increase in profits across a wide range of industries. (Source: http://www.loyaltyrules.com/loyaltyrules/Effect_Overview.html)
You have limited resources. Budgets and staff size aren’t going to grow all that much – but chances are pretty high that your goals are going to be all about growth.
And though new customers are important, remember that the real goal is profitable revenue. That’s what pays the bills and covers your paycheck.
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