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| + | What Customer Attrition Rate Costs Your Business |
| − | http://www.strategicmarketsegmentation.com/what-customer-attrition-rate-costs-your-business/
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| − | =Description=
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| − | Is your customer attrition rate costing your business profits and growth? Here’s some ways that your customer attrition rate costs:
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| − | * Customer attrition stifles your business’ growth.
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| − | * It costs almost seven times more to get a new customer than to reactivate a past customer.
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| − | * A ten percent customer attrition rate requires 100,000 new prospects just to stay even.
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| − | I cover each of these costs in more detail below:
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| − | =How To Calculate Your Customer Attrition Rate=
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| − | Calculating your customer attrition rate requires keeping track of your number of customers so you can compare numbers on different dates. With this data, you simply divide the later date by the earlier date to get your customer attrition rate.
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| − | The dates can range across a month, a year, or more. If you’ve got a customer attrition problem and want to retain more customers, I recommend using a short range like a month so you can test how different tactics affect your customer attrition rate.
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| − | =Customer Attrition Stifles Your Business’ Growth.=
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| − | In a recent study, businesses with customer loyalty programs show decreased customer attrition rates. The 2009 study found that businesses with good customer loyalty programs decreased their customer attrition rates by five percent and had 53 percent higher business growth than those without customer loyalty programs.
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| − | Your customer attrition rate enables you to predict how many new customers you need just to keep up with your customer losses. | |
| − | =The Best Way To Reduce Customer Attrition Rates=
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| − | If you want to grow your business and become more profitable, you need to lower your customer attrition rate with a customer relationship program.
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| − | According to Target Marketing, a good customer relationship program includes six actions:
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| − | # Deliver what you promise
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| − | # Understand attrition
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| − | # Understand retention
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| − | # Create personalized communications streams
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| − | # Get your hands around data
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| − | # Pilot and test.
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| − | One way to lower your customer attrition rate is to establish a good customer service program. If you want to train yourself and your employees to provide better customer service, I recommend Laurie Brown’s Customer Service Training Toolkit. Laurie is a nationally-acclaimed speaker, author and trainer who helps business owners to improve sales and customer service. Her program will teach and entertain you.
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