In an article by Veronica Maria Jarski in MarketingProfs, an
online resource portal for marketing professionals, she shared a truth that is
neglected or overlooked but if put into heart can become a goldmine for
companies.
She said that, “Companies that increase customer retention
rates by 5% can increase profits by as much as 95%.”This she got from Sparked, a company
specializing in predictive
analytics platform.
If we are to
marinate the idea in our minds for a while we can see clearly that customer
retention is not a new idea and is based on the concept that you should take
care or strive to take care of your existing customers. Most especially, to
customers that have exhibited loyalty from your products and services.
The concept
of Sparked is the same idea echoed by the book Loyalty Leap by Bryan Pearson.
If this is
the case, customer retention can only be achieved by creating something that
will engage the customers and make them feel they are valued.
Many
industries and companies tried to search for the tool that will give them
Midas’ Touch. The Airline industry became the first industry to discover it and
the rest is history.
What is the
best tool for customer retention? The answer is obvious - customer loyalty and
rewards program.
I am now
sharing this infographics of Sparked, simple and yet very powerful. The key
takeaway from me on this infographics is focus on customer retention and growth
is just around the corner.
Ergo, make a
robust and attractive loyalty and rewards program. If you do this, you will
keep your customers and be gifted by their continuous patronage. If this
happens, you are on your way for reaping on high side 95% profitability.
- Monday, October 20, 2014
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