Business 101 often harps on “new customers.” Growth! Expansion! More! But did you know that selling to existing customers boasts a success rate of 60-70%, while newcomers only offer a meek 5-20%?
“Treat ’em right, and they’ll stick around.” That’s a golden nugget from Grandma’s treasure trove, and boy, she wasn’t just talking about personal relationships. Dive into the tempestuous seas of business churn, and you’ll find that this bit of old-school wisdom rings truer than ever. Streaming services, the shining archetype, will serve as our compass.
Bigger Isn’t Always Better, Especially with Wallets
Business 101 often harps on “new customers.” Growth! Expansion! More! But did you know that selling to existing customers boasts a success rate of 60-70%, while newcomers only offer a meek 5-20%? Netflix, HBO, and their kin were so engrossed in the neon lights of expansion that they missed the quiet, reassuring glow of retention.
Retention: Where the Real Gold Lies
Consider the streaming behemoths. For every ‘Stranger Things’ they churn out, several subscribers trickle out. Yet, every loyal binge-watcher waiting for the next season holds more weight in gold. Think about it: 80% of your future treasures (read: profits) are likely to come from a mere 20% of your current buccaneers (read: customers). That’s not just business math, that’s alchemy!
The “Keep ‘Em Happy” Conundrum
Diving deeper into the rabbit hole, a startling 82% of the gallant audience in the U.S. proclaimed they’d abandon ship (or service) over a lousy onboard experience. Be it streaming platforms or your corner coffee shop; lackluster service results in an exodus. And, if 68% feel you’re just shrugging your shoulders at them, they’re likely to find someone who won’t.
But all’s not lost, dear friends! Address the qualms of your 60-70% troubled customers fairly, and they might just dock back at your harbor. And remember, when they do, they’re likely to pour in 67% more gold between their 31st and 36th month than in their initial voyages.
Tools of the Retention Trade
Emails aren’t just for forwarding holiday recipes. 80% of businesses, be it HBO or your bakery downtown, are casting their email nets to reel back in their wandering fish. Social media isn’t just for cat videos; it’s the siren song 44% are using to bring their audience back to shore.
Wrapping It Up with a Bow (Or a Pirate Hat)
Drawing the curtains on our streaming saga, and casting an eye on businesses far and wide, Grandma’s wisdom stands tall: it’s not about how many you draw in, but how many you keep warmly wrapped in your fold.
So, whether you’re the next big streaming giant or the proud owner of the town’s best taco truck, remember – it’s the loyal hearts that beat the loudest for you. Treasure them, for in their beat lies your rhythm of success. And as Grandma would say, “Take care of your folks, and they’ll take care of you.” 🎥🍿🌮🎶
Source:
CUSTOMER RETENTION STATISTICS – The Ultimate Collection for Small Business
Published: Jul 31, 2023 by Matt Mansfield In Retail Business
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