The Secret Sauce Formula for Retaining Customers [INFOGRAPHIC]

KenMueller
Ken Mueller Owner/Partner, Inkling Media

Posted on September 25th 2013

The Secret Sauce Formula for Retaining Customers [INFOGRAPHIC]

Ask any business what their top method of getting new customers is, and invariably most will say word of mouth and referrals.

And while word of mouth is so powerful, and is the principle upon which social media is built, many companies forget to make the next logical leap. And that’s the leap to fully comprehend that word of mouth is based on keeping your existing customers happy so that they not only return, but tell others about you.

In a new study on consumer trust in advertising, Nielsen finds that trust in advertising is up across the board, but not surprisingly, word of mouth remains at the top. In the study which compared various forms of advertising, 84% of the respondents showed a high to average level of trust in “recommendations from people I know,” while 68% felt the same way about consumer opinions posted online. And both of those are significant increases over a previous study.

Now, when it comes to customers, there are two types: new customers and return customers. Word of mouth works when return (existing) customers tell others about you, and those people become new customers, and hopefully the become return customers. So if you really want to get that word of mouth working for you, it behooves you to spend a good amount of time, effort, and money on retaining those customers.

That brings me to this incredibly informative infographic from my friend Adam Toporek and the folks at Customers That Stick. They’ve collected a lot of relevant information that makes a compelling case for just this: working hard on retaining customers.

I urge you to check out all of the information on this infograph, but first consider these three main points.

Why Customers Leave

82% of consumers in the U.S. said they stopped doing business with a company due to poor customer experience.

That’s an awfully big number for something like that. Are you willing to lose customers for something so easily fixed?

Why Customers Stick

Customers stick around for just the opposite reason: good or great customer experience, i.e., they are treated well.

But hears the kicker: we’re awfully darn forgiving.

92% of consumers say the would go back to a company after a negative experience, if they received an apology and/or a discount and/or offered proof of enhanced customer service.

Even when they have a negative experience with you and your business, you can win them back fairly easily.

And then, there’s this to consider:

Retained customers mean $$$

It’s a lot less expensive to retain customers than it is to get new ones. It’s less work AND less money. Makes it kind of a no-brainer, doesn’t it?

And don’t forget, when you lose a customer, you’re not just losing their money. You are sending them to your competitors. Plus, they might take others with them with their word of mouth, which can be negative, just as easily as it can be positive.

Oh, did I mention that repeat customers tend to spend more?

So take a look at Adam’s infographic. Study it. Memorize it. Learn the lessons it holds, and share it with your employees, coworkers, bosses, or whomever. Let’s work on retaining customers, rather than constantly having to go out seeking new ones.

customer retention (Infographic)

 

 The Secret Sauce Formula for Retaining Customers (Infographic)

KenMueller

Ken Mueller

Owner/Partner, Inkling Media

The founder of Inkling Media, where he does social media and marketing for small and medium-sized businesses. He also is an adjunct professor at the Pennsylvania College of Art & Design, teaching continuing education classes in social media and inbound marketing.
See Full Profile >

Comments

Indeed! It really is profitable to keep your current customers than finding a new one. As customer myself I tend to stick well with those who offer quality service and proffesional customer service so I can atest to the post! And I am applying this to my own business. Thanks for the sharing new ideas on how to keep them more!

I still wonder why marketeers spend a lot of their budget to reach new customers instead of keeping their loyal customers, friends, and give them f.e. a discount. This infographic shows that this will pay off And seem much less effort. I'm looking forward to their respons.