The Business That's Now Only Interested In Customer Retention

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Our 2018 business strategy looks like this: customer retention.

We’ve spent a decade putting new business first, plowing our efforts and resources into marketing and advertising.

And it’s a strategy that, until now, has worked. Customer acquisition has fuelled our growth and our revenue rose to $5.6million this financial year, up from $3.75million last year.

But when you focus so pointedly on one growth area, the risk is you drop the ball on others. Late last year, we spotted that our customer retention had been quietly slipping. No disastrous drop offs but not an upward trajectory, either. It’s a puzzle we must solve, or our growth will slow.

And so we’ve embarked on a collective mission. The whole business is now focused solely on reducing our churn rate and looking for innovative ways to cultivate meaningful and lasting relationships. Anything that works, we’ll roll out across the board.

I fully accept balancing retention and new business is crucial, but without doing everything within our control to create loyalty, we are making life harder. Loyalty brings new customers via recommendations – 55% of US consumers recommend brands or organisations they are loyal to to family and friends, and 12% publicly endorse it on social media, according to a report by Accenture – and it is vastly less expensive than acquisition.

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Shutterstock

Our 2018 business strategy looks like this: customer retention.

We’ve spent a decade putting new business first, plowing our efforts and resources into marketing and advertising.

And it’s a strategy that, until now, has worked. Customer acquisition has fuelled our growth and our revenue rose to $5.6million this financial year, up from $3.75million last year.

But when you focus so pointedly on one growth area, the risk is you drop the ball on others. Late last year, we spotted that our customer retention had been quietly slipping. No disastrous drop offs but not an upward trajectory, either. It’s a puzzle we must solve, or our growth will slow.

And so we’ve embarked on a collective mission. The whole business is now focused solely on reducing our churn rate and looking for innovative ways to cultivate meaningful and lasting relationships. Anything that works, we’ll roll out across the board.

I fully accept balancing retention and new business is crucial, but without doing everything within our control to create loyalty, we are making life harder. Loyalty brings new customers via recommendations – 55% of US consumers recommend brands or organisations they are loyal to to family and friends, and 12% publicly endorse it on social media, according to a report by Accenture – and it is vastly less expensive than acquisition.

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