by Nicole Fallon, Business News Daily Assistant Editor
What happens when you lose a customer? If you think you can just ramp up lead generation to compensate, you may want to reconsider. According to research by client engagement tool CLIENTpulse, it costs five times less to keep an existing customer than it does to gain a new one.
The CLIENTpulse survey found that 90 percent of customers who leave a business never return, which is pretty bad news for businesses who take the “we’ll just get new customers” approach. On the other hand, customer loyalty grows by 30 percent if a client’s problems with your company are resolved, so it makes a whole lot of sense to put customer retention on the top of your priority list.