There has been some fascinating research done in recent years to highlight just how important it is to keep your customers happy.īeyond the well-known Pareto principle that states 80% of a company’s revenue comes from 20% of its customers, Harvard Business School Professor, Sunil Gupta, has provided further evidence to show the importance of retaining customers that provide high levels of profitability.įurthermore, Bain & Company have found that increasing customer retention rates by 5% increases profits by 25% to 95%, and it is widely agreed upon in the SaaS world that the cost of acquiring a new customer is anywhere from 5-25% more expensive than retaining an existing one. Sometimes you can retain a customer for a long period of time and build a fruitful, trusting relationship that enables both of you to be more successful. It is a simple reality that customers come and go and sometimes there is nothing you can do about it. Minus the sentimental value, this also applies to the world of business. In one of her hit songs, Adele famously sings the words “Sometimes it lasts in love, but sometimes it hurts instead”. Retaining valuable customers is a necessity
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