When your business maintains a healthy relationship with customers, revenue will always increase considering current happy customers tend to purchase more. There is also the potential for a satisfied customer to purchase additional products or services when offered the option to bundle those products and services. For instance, if a satisfied loyal customer has home insurance from an insurance company that they trust, there is a high probability that the customer will also purchase property and auto insurance from that same company.
Retention Cost: The cost to service existing satisfied customers is substantially less expensive than that of acquiring new customers considering there is no acquisition cost, your business should already know the needs and wants of existing customers, and active customers will have fewer queries and complaints as they are already aware of your business’s processes, products, and checkout flow.
— For more lessons like this, purchase your copy of Act Like a Business: Think Like a Customer by Dr. Elijah Clark from all major bookstores. —
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Dr. Elijah Clark (December 5, 2022). Revenue Growth [Web log post]. Retrieved from https://elijahclark.com/lesson-150/
