The High Cost of Low
Customer Retention
Consumers are more empowered than ever!
Faced with an abundance of choices and information, they're looking for
personalised, differentiated experiences.
And they're not afraid to shop around.
In response, businesses are working harder to attract new customers
and engage existing ones.
In this competitive new landscape, customer churn has become a big
deal.
Not only does churn stall growth, the costs of acquiring
new customers is 5 times more expensive than retaining
existing ones.
In Australia, businesses lose on average between 6-8 %
of customers every
year. On the flipside, the benefits of reducing churn
are huge - a 2% increase in customer retention is equivalent to a 10%
reduction in costs.
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