Customer Retention
Flat sales growth does not necessarily mean that the sales function is ineffective, or that your're targeting the wrong market segments. If customers head out the back door faster than they come in the front door, the best sales force and the most thoughtful segmentation scheme may be all for naught.
Most people understand that it costs substantially more to acquire a customer than to retain that same customer. Studies have shown that it costs about five times as much to attract a new customer as to keep an old one. This is because an unhappy customer will tell 8 to 16 people, and 91% of unhappy customers will never again purchase services from the offending vendor. However, if an effort is made to remedy a customer’s complaints, between 82% and 95% will grant a second chance.
PMG helps organizations capitalize on these facts by:
- Understanding and measuring an organization’s customer retention rate
- Identifying key drivers of retention
- Building systems and processes to leverage drivers into higher retention
- Designing processes and methods to measure retention and respond when and as appropriate