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Cost Savings
Most management textbooks will tell you that it costs somewhere in the region of seven-times as much to attract a new customer as to keep an existing one.
Risk Taking
Comfort with a company and trust in their expertise leads people to try new things. Billy Mays sold a product called Oxy Clean (a laundry detergent booster,) in infomercials. Oxy Clean worked, and more people started buying it. Oxy Clean was something new and untested when it came out, and people are generally very leery of new products. Billy Mays gained people's confidence as a spokesman, and the other products he sold like Sham-Wow's and a line of orange-based de-greasers sold very well because of it. People were willing to take a risk because they trusted Billy Mays.
Preferential Shopping
There are a lot of grocery stores in most towns, but most people tend to go to one or two of them over and over again for a reason: They know what is going to be there, where to find it, etc. Many people become extremely preferential after a few years, to the point that they will not flinch at adding 20 minutes to their driving time to shop in a store they know and like.
Evangelism
Customers who like your products and feel like you have treated them well will sell your product for you. They may not sell it hard, but they will recommend it to friends.
Customers who feel like they have been treated poorly by you will actively seek to tarnish your name. I spent many years recommending Dell computers to my friends and neighbors, but now I actively advise anybody who is thinking of buying a computer not to buy from them because of a horrible customer service experience.
Tailoring Your Wares
When you know a customer, you can make informed recommendations or ensure that you carry a certain item that you know they are going to want. When you do not know your customers because most people only visit a few times, you can only generalize. You can better serve a market segment if you know what they want.
What else can I help you with?
How do you calculate client retention rate?
What is your customer retention rate? Number of current customers __5086___. Total number of customers served in the past 12 months:__256___. Customer Retention Rate = #1 ÷ #2 = _____ (your percentage of retention). What is your goal for your customer retention rate this year? _____ *It is important to measure the change in this number with regularity. *When it is below 80%, then it is a serious area of concern.
Importance of retail marketing?
Retail marketing is important to keep consumers updated on new local available products as well as promotion of incentive sales for customer growth and retention.
Why customer retention is important?
Customers is life of systems.
What are the benefits of customer retention programs?
Customer retention programs are designed to keep customers at a specific business. The benefit is that the company will continue to receive business from current customers as well as the new customers that come in.
Discuss the Concept of customer value and its importance to successful marketing?
discuss the concept of customer value and its importance to markeking
What is the explanation for the importance of customer retention?
Good customer retention is vital to any organization because a slight reduction (5%) in the customer defection rate has a disproportionately positive effect on profitability (depending on the cost of acquisition, ranging between 25 and 80%!). Companies with high retention also grow faster. However, customers can only be retained if they are loyal and motivated to resist competition
How do you calculate client retention rate?
What is your customer retention rate? Number of current customers __5086___. Total number of customers served in the past 12 months:__256___. Customer Retention Rate = #1 ÷ #2 = _____ (your percentage of retention). What is your goal for your customer retention rate this year? _____ *It is important to measure the change in this number with regularity. *When it is below 80%, then it is a serious area of concern.
What is the importance of customer handling?
Explain the importance of customer handling
Importance of retail marketing?
Retail marketing is important to keep consumers updated on new local available products as well as promotion of incentive sales for customer growth and retention.
Why customer retention is important?
Customers is life of systems.
Where can one get ideas on how to write a customer retention survey for employees to take?
You can get ideas on how to write a customer retention survey for employees at the Cvent website. Once on the website, click on "Web Surveys" in the top navigation menu and then click on "Customer Retention" in the right-side navigation menu to bring up the information.
What are some great customer retention strategies?
Some great customer retention strategies include being honest, providing great customer service and incentives for customers who continue service with your company. It is much cheaper to keep a current customer than to gain a new one.
How good customer service promotes customers confidence?
Yes,Customer services promotes the customer confidence and increase the retention ratio of the customer at a large rate.
Where does most of your profit come from owning a convience store?
Customer retention
What are the benefits of customer retention programs?
Customer retention programs are designed to keep customers at a specific business. The benefit is that the company will continue to receive business from current customers as well as the new customers that come in.
What is the best customer retention software?
Varoli Corporation is the industry leader in customer retention software. Their software can help you to keep your customers satisfied. The software will allow you to keep track of customers and increased sales.
Discuss the Concept of customer value and its importance to successful marketing?
discuss the concept of customer value and its importance to markeking
