DATA FOCUS: Data outsourcing
How marketers can use data to increase customer retention
Marketing gurus tell us that customer retention is the key to any successful business: it apparently costs at least seven times more to find a new customer than it does to keep an existing one and just a five per cent increase in retention can boost profits by over 60 per cent.
But keeping customers can be more difficult than it sounds. It's not just a simple question of having great products and customer service. Some customers will move suddenly and without warning but many more will gradually reduce their purchases over a period of time. If your business is very small, the chances are that you know.