Churn rate reduction or customer retention has traditionally been given less priority as companies are more concerned with driving more sales. An organization is successful, when you have a definite set of customers who are active at the same time are equally satisfied with the services that you have been delivering.
The main objective here is not only to acquire new customers but also to retain them. Most of the companies have a high churn rate because they spend less time on retaining customers and more time on generating revenue. Only 5% increase in customer retention can increase your profit margin up to 95%. Additionally, it will help you expand the lifespan of a customer associated with your business.
In recent studies, it has been observed that use of retention marketing strategies is the growing intelligence in the market with only a few companies adopting it.
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Harvard Business School states, “We showed that in industry after industry, the high cost of acquiring customers renders many customer relationships unprofitable during their early years. Only in later years, when the cost of serving loyal customers falls and the volume of their purchases rises, do relationships generate big churn rate.”
Here’s an infographic which will tell you that the changes you implement in your product/service can be a great booster to improve your churn rate:
The high churn rate can be the biggest threat to any organization and thus, Remarketing can be one of the ways to reduce it. It acts as a backend process to keep your customers, forever.