The High Cost of “Lost” customers

It costs 5 times as much to get a new customer as to retain a current customer.

It’s very sad that many companies put much more effort into gaining new customers than keeping the ones they already gained. The cost involved is amazing. There is tremendous value in having an active customer retention program that keeps your current customers buying from you rather than drifting away to a competitor.

We recently saw a white paper by customer loyalty guru Jill Griffin. She cites a Rockefeller Foundation study on the reasons customers become “lost” customers:

Complaints were not handled 14%
The competition 9%
Relocation 9%
No special reason 68%

No special reason means benign neglect.

So how do we deal with “benign neglect”? While there are many ways, it can be as simple as reaching out to say “thank you” for your loyalty. A thank you card in the mail says that you appreciate their business and want to stay connected. It takes less than a minute with ThankYouPro to avoid the 68% benign neglect syndrome and keep that customer engaged with you.