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26th February 2016

Customer Retention or Reducing Costs?

Cost Reduction, Operating Costs, Customer Retention, Sales, Renewals, Value, Profit, Opex, Operations, Efficiency, Excellence

What if you could have both?

No it isn’t Christmas. And i am not Santa Claus!

But all too often i have seen businesses sacrifice cost out of the business which then leads to a poor customer experience. Then customers start to leave so sales volumes drop and so does revenue. Its a slippery slope to be honest!

But if businesses need to make more profit then of course they have to do one of two things. Increase profit or slash costs.

The first one can be achieved in many ways. The second one eventually ends in tears! But what if you could do both?

You must be a Genius!

Unfortunately not. But i can still solve the issue.

For long term growth & stability you need to invest in your business. But you need to invest in the right areas. And that isn’t always as expensive as it sounds!

You may not have known that on average a 2% increase in customer retention can save you 10% of operating costs! How does that work then?

Well, if you have an increase in customer retention then you have happier customers. Happier customers tend to be happy for a reason, they are happy with what they are getting from you. Happy customers sit in the background without a need to contact you, unless it is of course to buy more stuff from you (Yesterday’s blog). Or they could be recommending you to others who contact you (A nice problem to have!)

So with this set up, it means you have less repeat contacts to deal with. Fewer complaints, retention calls,  follow up contact to try and save them. It even means less administration and documentation, the list just goes on & on.

So if that is the case then all we need to do is make customers happier?

I rest my case!

Until tomorrow, keep loving your audiences!

P.S. If you do want some help making this a reality, give us a call. We’ll help you on your journey!

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