Did You Realize?

While companies invest in product development and market research, they typically do not invest in customer retention & relationship improvement. Here are a few reasons why investing in the relationships with your good customers is a requirement for success.

	“Almost 70% of the reasons customers stop buying from suppliers has nothing to do with product…" A less that desired service and relationship quality can end a long-term relationship worth millions of dollars."                           (Strategic Account Management Association)
	60 – 80% of customers say they are satisfied prior to leaving…
	US Companies lose: One-half of their customers every 5 years One-half of their employees every 4 years One-half of their investors every year …thereby eroding profits through constant training, hiring, lowering price in an attempt to keep customers, slashing product features/quality and organization to remain competitive – a downward spiral.                                         (The Loyalty Effect by Frederick F. Reichheld)
	The cost, in lost profits and time, to replace or regain a key customer is not just significant, but could make the difference in your year.
	Raising customer retention rates by 5% could increase customer value by 25 – 100%                                                (Harvard Business Review)
	Retaining 2% of your customers is equivalent to the savings achieved from a 10% cost reduction effort.                        (The Loyalty Effect)
	Some companies can double their sales by working differently with the top 20% of their customers.

As companies mature and face slower growth and greater competition, they need to carefully assess their customer acquisition strategies and the real value of new incoming customers. Adding more of the wrong kind of customers may put you slowly out of business.

Contact Walker Consulting LLC to set up a time to discuss these issues: