Make New Friends and Keep The Old: A Lesson In Customer Retention

You might be familiar with the saying, “Make new friends and keep the old, one is silver the other is gold.” Well, the same is true in the customer care space.

While it’s certainly important for companies to acquire new clients, it’s just as important—if not more—to focus on retaining existing ones. After all, research suggests that it costs more to gain new customers than it does to retain existing ones, which is a subject that I lent a great deal of attention to in my recently published book.

Also, research from Econsultancy’s Cross-Channel Marketing Report revealed that 70 percent of companies say it’s cheaper to retain a customer than acquire one. Not only do existing customers costs less, but they’re also more likely to recommend your business to family and friends and spend more money with you in the future.

In fact, Bain & Company found that repeat customers spend more and generate larger transactions. Indeed, an average repeat customer spent 67 percent more in months 31-36 of his or her shopping relationship than in months zero to six.

What’s more, the study also found that on average repeat customers referred three people each to an online retailer’s site after their first purchase there. After ten purchases, that same shopper had referred seven people to the site.

As you can see, customer retention has a big impact on your contact center services ROI and you’re company’s overall bottom line. Therefore, make sure that you put a concerted effort toward keeping your existing customers happy and wanting to come back for more.

For instance, reward them for maintaining their relationship with your business by offering them a yearly discount or enrolling them in a customer loyalty program. And, always make an effort to be consistent and reliable when interacting with your most devoted customers, they deserve some special treatment!

While making a good first impression will prompt a customer to come back a second time, delivering consistently good customer care will cause them to return, and thereby foster a positive, long-lasting relationship with your brand.

Steve Brubaker began his career at InfoCision in 1985. In his current role as Chief of Staff and as a member of the Executive Team, he is responsible for HR, internal and external communications, and manages the company’s legal and compliance departments. Brubaker is a member of a number of professional organizations, including the DMA, SOCAP, and PACE. He also donates his time to serve on several university boards, including the Executive Advisory Board for The Taylor Institute for Direct Marketing at The University of Akron and The University of Akron Foundation Board. He is a frequent speaker for national events and has also been honored with a number of awards and recognitions for his contributions to the call center industry.