3 Tips for Improving Your Customer Retention Process

Most business owners know the cost of acquiring a new customer is much higher than retaining a current one. But just in case you need some convincing, here are a few statistics from Leading on the Edge of Chaos by Emmett C. Murphy and Mark A. Murphy.

1. Acquiring new customers can cost five times more than satisfying and retaining current customers.

2. A 2% increase in customer retention has the same effect on profits as cutting costs by 10%.

3. The average company loses 10% of its customers each year.

4. A 5% reduction in customer defection rate can increase profits by 25-125%, depending on the industry.

5. The customer profitability rate tends to increase over the life of a retained customer.

Those numbers are pretty astonishing and they point out just how critical it is to spend time improving your customer retention process.

Happy customers are active customers

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What about Facebook?

If you’ve been watching any portion of popular media lately, there are two important things you’ve recently seen with regard to Facebook:

  1. The Social Network, story of Mark Zuckerburg and Facebook, won 4 Golden Globes
  2. Facebook was the most visited site in 2010, outranking Google.

Why all the hubbub about this place where people play games and connect with old college friends?

Facebook Is More Thank Social Nonsense

Social Networking has often been looked at as a waste of time where people gripe about work and life, or play games and other unproductive activities. When we look at the potential impact Facebook offers to businesses, here are some vital statistics you should know:

  • Facebook currently boasts more than 500 million users worldwide, about 70% in the United States
  • About 50% of Facebook users log on in any given day (that’s roughly 175 million in the US)
  • The average user has
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Your Blog is Your Hub

When thinking about Social Media Marketing (SMM), many entrepreneurs and marketing directors of small and mid-sized businesses see a time vacuum. In fact, SMM can drain a lot of time if you don’t know how to manage it. One of the vital keys to effectively leveraging SMM for your company is to develop a strategy for efficiently distributing your message and engaging your audience without having to log into a dozen, or more, different sites.

The key: L3 and Sync

When it comes to distributing your message, your blog can be a great hub for distributing your message, as well as engaging your audience through various other social networks. In a great article at Web Marketing Today, Lorrie Thomas suggests the L3 and Sync method:

  • Link to your other social media – on your blog, be sure to provide links to the other social media outlets you leverage.
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Now is the Time: 5 Easy Steps To Get Started in Social Media

You’ve heard about the explosion of social networking sites. Over 400 million people worldwide use one or more. A social networking site is a place of social interaction. On Facebook, members become friends, share information, invite each other to events, and engage in other social activities. On Twitter, people share brief messages or updates with one another. Individuals, organizations, and businesses take part. Have you ever wondered if you should get involved, and if so, how?

You may be hesitant to try something new; however with the enormous traffic that these sites receive, it’s time to make your presence known! Not only is social networking a strategy to increase revenues and/or deepen customer relationships, it is also a fabulous Search Engine Optimization (SEO) technique for linking to your website.

Here is a simple 5-step process, adapted from the article, “5 Steps to Get your Business Ready for Social Media” to … Continue reading