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Retaining customers

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Today businesses are recognising the importance of satisfying and retaining current customers. Here are some interesting facts on customer retention:

  • Acquiring new customers can cost five times more than the costs involved in satisfying and retaining current customers
  • The average business loses 10 per cent of its customers each year
  • A five per cent reduction in the customer defection rate can significantly increase net profits
  • The customer profit rate tends to increase over the life of the retained customer.

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