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The Importance of Repeat Business

The Importance of Repeat Business. How Good Customer Service Pays Off. “Customers First”. We have all heard the phrase “The Customer is Always Right” Not all businesses operate under this mantra Do you think they should?. Why Should We Care?. Article: 10-15% annual loss of customers

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The Importance of Repeat Business

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  1. The Importance of Repeat Business How Good Customer Service Pays Off

  2. “Customers First” • We have all heard the phrase “The Customer is Always Right” • Not all businesses operate under this mantra • Do you think they should?

  3. Why Should We Care? • Article: 10-15% annual loss of customers • Other research says it can be as high as 20-40% • Why? • Poor Service • Disappointing product experience • Brand ambivalence

  4. Customer Loyalty • Only 1 in 4 customers is actually brand loyal • Most customers are ambivalent and can either stay or migrate to a competitor • Factors that can affect loyalty: • Relation of price and quality • Customer service offered • Significance of product • Status associated with brand

  5. Increase The Bottom Line • Reducing customer loss by just 5% can potentially increase revenue by as much as 85% • How? • Don’t have to pay to attract those customers again • Its much more expensive to attract new customers

  6. Why Do We Want Loyal Customers? • Northwestern University's Center for Retail Management reports: • 12-15% of a company's most loyal customers contribute 55-70 %of total sales

  7. Exit Ticket • Why is customer loyalty so important?  • If it is so important, why do so many companies spend the bulk of their advertising dollar to get new customers rather than retain current customers?  • What are the  keys to an effective customer loyalty program?

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