Improving Customer Retention

Benefits of Training

A 5% improvement in customer retention can cause an increase in profitability between 25% and 85% (in terms of net present value) depending upon the industry.

Reichheld and Sasser

There’s a lot of talk today about the importance of customer retention. Retaining customers is critical because repeat customers offer many advantages to a business:

• Reduced cost. The cost of acquiring a customer occurs only at the beginning of a relationship: the longer the relationship, the lower the amortized cost.
  
  
• Less price sensitivity. Loyal customers tend to be less price sensitive. This can result in increased sales of higher-value products and services.
  
  
• Word-of-mouth. Loyal customers initiate free word of mouth promotions and referrals, thereby boosting your revenue.
  
  
• Lower cost of service. Loyal customers tend to be less expensive to service because they are familiar with your processes, need less education, and require less service time.
  
  
• Stability. Long term customers tend to be satisfied with their relationship with the company and are less likely to switch to competitors, making market entry or competitors' market share gains difficult.
  
  
• Employee satisfaction. Loyal customers make your employees' jobs easier and more satisfying. In turn, happy employees provide better service resulting in higher customer satisfaction.
  
  

Impact Learning Systems' training programs have been proven to improve customer satisfaction, sales, and customer retention. To learn how, give us a call today at 800-545-9003