Challenging economic times combined with easy access to the web have made it more difficult for businesses to gain and retain customers. According to numerous studies, the cost of a new customer acquisition is ten times more than retaining one. Now more than ever, it is important to understand how to develop long-term relationships with your customers.
When it comes to bottom line figures, the thriving companies are the ones reporting high customer satisfaction and customer retention rates. There is no denying the direct correlation between satisfaction levels reported on customer surveys and retention rates. How you analyze survey data will play an important role in the development of effective customer retention strategies.
Strategy from Survey Data Analysis
The companies that are succeeding constantly analyze their client relationships and develop strategies based on identified trends. A prime example is identifying factors that lead to customer attrition. By learning the shared characteristics of clients you have lost, you can identify those most likely to leave next, and develop techniques directly aimed at retaining these “high risk” customers. The ability to focus your marketing strategies appropriately to different client groups can increase your retention rate and the lifetime value of each customer.
A vigilant program of survey data analysis can give a company the edge it needs to understand how customers respond to various factors in their business relationship. Fortunately, advances in survey and data analysis technologies have made it easier to scrutinize the wealth of information needed to develop future strategies.