Thursday, May 14, 2009

Listening To Your Customers Saves You Money

Sid Probstein, CTO of Attivio, wrote an article which lists a lot of reasons why you should listen to your current customers instead of just focusing on getting new ones. Here are some of them:

  • Acquiring new customers can cost five times more than satisfying and retaining current customers
  • A 2% increase in customer retention has the same effect on profits as cutting costs by 10 percent
  • The average company loses 10 percent of its customers each year
  • A 5% reduction in customer defection rate can increase profits by 25-125%, depending on the industry

Enough reasons for you to start doing field studies?

Read the entire article here:

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