Did you know that as little as a 5% increase in customer retention can increase profits by 25% to 95%?
Did you know that it can be six to seven times more expensive to acquire a new customer than it is to retain a current customer?
Oh, and get this, did you know that referrals among repeat customers are 107% greater than non-customers?
With these types of statistics, it’s no wonder that “relationship marketing” has become the new buzzword of marketing. You see, the goal of relationship marketing is to increase customer loyalty, thus reducing costs and improving profit margins.
O.K. Enough with the corporate speak. This month my posts are going to focus on the broad topic of relationship marketing and how entrepreneurs and small business owners can use this strategy to grow a thriving business.
Relationship marketing grew out of the direct response marketing campaigns of the 1970s and 1980s, according to Wikipedia. It’s focus is on customer retention and satisfaction. Relationship marketers understand the long-term value of a happy client. And, with today’s barrage of of options, people are expecting … and getting … more out of their relationship with the companies they do business with.