……is customer retention. It is far cheaper and easier to retain and develop existing customers than it is to attract new ones, and yet relatively few executive teams I work with regularly and critically review retention rates.
For example, do you know:
- Your company’s overall level of customer retention?
- How that level varies by customer segment?
- How your retention rates to industry and best-in-class standards?
- The £ value of lost sales and profit from your non-retained customers over the past 3, 6 or 12 months?
- Why your lost customers are no longer buying from you?
- The competitors that are now serving these customers?
Without this kind of information, you’re unlikely to be able to manage retention effectively.
Managing retention is just as critical as managing costs and should be a priority of the executive team. Most organisations have many cost accountants, but I’ve yet to meet a customer retention accountant!
Off The Record: If You Wanna by The Vaccines
Well, I don’t want to see you with another guy,
But the fact is that I may,
That’s what all the friends I do not like as much as you say.
“Well, give it just another couple of months or so,
Then you’ll be okay.”
That’s what all the friends I do not like as much as you say.
But if you wanna come back it’s alright, it’s alright,
It’s alright if you wanna come back, to me.