As per Harvard Business School report, on average, increasing customer retention rates by 5% increases profits by 25%-95%. This substantiates the importance of customer retention in driving sales and revenue.
Gainsight, the customer success management company, knows that customer churn is a reality that every company has to deal with. Hence, Gainsight suggests a proactive approach to reduce customer churn and manage customer retention. Gainsight believes in finding the root cause of customer churn and eliminating it rather than adopting a reactive approach. Below are some facts that validate the importance of implementing customer retention strategy.
- Implementing a customer retention strategy helps:
- Identify and explore referral sales opportunities
- Build and foster constructive relationship with customers
- Identify and rectify flaws within company policies and processes
- Enhance brand reputation
- Understand future needs of the customers
For any business, customers are the greatest asset. This makes customer retention an important business strategy to increase profits and reduce churn.
For more information about the importance of customer retention strategy, visit www.gainsight.com.