What's your company's customer retention rate for the office industry? Defined as the percentage of customers who make at least two purchases within a specific period of time -- typically a year -- it's important that you optimize your company's strategy to achieve a high rate. Statistics show that increasing customer retention rates by just 5% can yield an increase of up to 25% profits. If you're skeptical of the benefits of customer retention, keep reading to learn how it can help you sell to the office industry.
Customers Have a 60% or Higher Chance of Buying Again
After a customer has purchased an office product or service from your company, there's a good chance that he or she will return to make another purchase. A report by Marketing Metrics found that customers have a 60% or higher chance of making at least one other customer. But some office customers need a little motivation, which is why you should increase your customer retention rate.
Existing Customers Cost Less 25 Times Less to Sell To
According to the Harvard Business Review (HBR), it costs up to 25 times less to sell an office product or service to an existing customer than it does to a new customer. By optimizing your company's operations for a high customer retention rate, you'll reap the benefits of lower sales costs. This, of course, will help drive up your office company's profits.
Existing Are Easier to Sell To
Existing office customers aren't just cheaper to sell to; they are also easier to sell to. Once a new office customer has made a purchase, you'll immediately have information on him or her that you can use to create effective, custom-tailored sales messages. If the office customer purchased new lighting, for example, you can check to see if he or she is interested in purchasing security or data services. Scour through customers' past purchases to gain insight into their needs. Using this information, you can follow up with relevant offers to sell more products and/or services and boost your customer retention rate.
High Customer Retention Rate Encourages Positive Reviews
Before buying a product or service, it's not uncommon for office buyers to search for online reviews of the selling company. You can attract positive reviews by improving your customer retention rate. A high customer retention rate means that many customers are making at least two purchases. As a result, they are generally satisfied with your company and may leave a positive review to share their experience with others.
How Can You Get More Customers to Increase Retention?
Keep your funnel filled so you are regularly closing new deals. Keep the momentum going with office industry, identified projects from SalesLeads. Dedicated to the office industry, our experienced researchers find and track opportunities so you can directly call the key contacts via direct dial, email or both. Try a few out at no charge.