Customer retention is key to long term profitability and growth. The old adage that 80% of your business comes from 20% of your clients.
Converesly, it only takes 20% of your effort to maintain a client while it takes 80% of your effort to find new customers. Client acquisition is a costly and time consuming process. When quantified, acquisition has a direct result on earnings.
So why isn't more effort focused on retention? Is it complacency or negligence? Are we exposing ourselves to not celebrating our achievements by ignoring those who have contributed to our success? Maybe so! Attention to account management and relationship management are worth the effort. Growth may be in site, you may already have the answer in your client base. Attention to your base and listening to client needs and wants may uncover business you are qualified to help with that your customers never knew you addressed.
Enhanced your customers experience, it may lead to an enhanced bottom line. Remember the 80/20 rule.
Greg is a Management Consultant that can help with customer audits and relationship management. www.ogilvieyoung.com