What is customer communication and why is it important?

It is very wrong to think that the main goal of a business is to attract customers.

In fact, most of the income comes from your old customers. Therefore, your task is to build and maintain warm and strong relationships with your customers.

Of course, attracting new customers is necessary, and you definitely need to do it, but retaining your old customers is no less important, and maybe even more important.

?What is the customer retention rate?

The customer retention rate is the percentage of customers who used the services of the campaign during a certain period of time. The value of the ratio is used to understand the behavior of your customers, as well as to analyze the effectiveness of the business strategy.

The formula for calculating Retention Rate

Retention Rate = (number of clients at the end of the period - number of new clients for the period of time) / number of clients at the beginning of the period.

For example, if you had 100 customers at the start of the year and made 20 new ones but lost 10 by the end of the year, your CRR would be 90%.

Why is it important?

Retaining a customer is 5-10 times cheaper than acquiring a new one.?The probability of selling a product to a regular customer is 3.5 times higher than to a new one.

This is stability?- the presence of regular customers (and before that working with them) is very important, this is the constant support of your business, which is especially necessary in times of economic crisis.

Longevity.?According to a study by the American statistical portal Statista, a loyal customer who has been with a company for 3 years spends 67% more than a customer who has stayed with a company for less than 6 months.

Customer retention helps save money on marketing and customer outreach.?Strong retention methods provide a powerful influx of new customers who came through the recommendations of friends and acquaintances. That is, you no longer have to spend so much money on advertising on social networks, because your regular customers will do it for you.

You get more high-quality reviews.?Customers who like you want to feel like they belong to your brand and therefore, when possible, they try to express their opinions and suggestions. Many of their ideas turn out to be useful. It also boosts customer retention even further: 97% of consumers surveyed said they feel more loyal to companies that have adopted their offerings.