Depending on who you ask, retaining customers is either valuable — or really, really valuable.
By some estimates, a repeat customer is the equivalent of striking gold. One study found that increasing customer retention rates by 5% increased a business’s profits by 25% to 95%. On the other hand, the cost of acquiring a new customer can be steep: anywhere from five to 25 times more expensive than the cost of retaining an existing one.
Cut down on expenses and increase your profit, all in one marketing strategy. Customer retention doesn’t have to be complicated, especially when your business is well established. Focus less on reaching new customers, and more on increasing the frequency and spend amount of the customers you already have. Here are five ways to increase customer retention and start growing your revenue to new heights.
An organization generates a lot of data. Most of this data is kept in databases, which are electronic repositories. There are many hidden aspects of such data that can be of good use for the upper management during decision making. For example, employee data can give a brief idea of the skills and knowledge levels of the employees. This data can be used for training purposes so that additional skills can be inculcated in the employees. Predictive modeling is not a new concept, but in the recent days, it has come to the forefront. Thousands of organizations worldwide are spending millions and billions on data mining, business intelligence, and predictive modeling.
Business intelligence (BI) is a term we hear frequently in regards to improving corporate decision making. There are numerous software packages available, and vendors seem to be rushing to market their “unique” business intelligence solutions. What exactly is business intelligence? Does it really improve how a company runs its business? Or is it a buzzword that delivers little real value to the enterprise?