Growth is a word we use throughout our lives. We grow from infancy to childhood and, much to our dismay, into teenagers and adults. We learn and grow in school, college and throughout our careers. Companies even grow with regards to their employee count, office size and even, most importantly, revenue. However, there is one type of growth I’d like to focus on for a moment if you’ll indulge me: customer growth.
Customer growth is key to any business. Everyone wants to gain customers but in order to keep them products and services need to perform and, let’s be honest, in today’s market there are more alternatives. Companies are turning over product lines on a yearly basis, sometimes faster! The status quo is a moving target, making retention increasingly important to business today.
Sadly, companies focus on acquisition more than customer retention, even though it can cost 7x more to acquire new customers. (KISSmetrics)
If your customer keeps growing within your product, retention can increase and the possibility for brand advocates increases along with it (hello, isn’t that your ultimate goal?). The problem with growth is it can be painful. No one likes losing time to learn a new process unless it can help the bottom line.
So how can customers grow within a product? It may be as simple as sharing FAQs and blog posts or as complicated as helping someone learn the system or product one-on-one. Regardless of how you promote customer growth, one thing is for sure: the more you engage with your customers, the stronger your relationship will be with them. Engagement builds relationships and relationships build revenue.
With just a 5% increase in customer retention, organizations can increase business profits by 25%-125%. (Gartner Group)
It’s obvious an organizational concentration on customer growth and retention is a key focus in moving forward but the tricky part is actually doing it. To learn how Right On Interactive works with B2B and B2C companies to create customers for life, check out this video.