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ID281 - Customer Retention Rate

When Gary completed his certification on Net Promoter Score the key take away quote was "A 5% increase in retention can result in a 50 to 100% increase in profit". This all tied in to the cost of acquiring a new customer versus keeping the ones you have. We also often hear dealers quote Retention Rates when selling to new prospects and wonder how they are calculating that.

Using a standard CEO Juice report will allow you to better benchmark your retention rate. We are also trending it so you can see how it ties to your NPS trend. FYI it's important you are tracking your source for sales and how many come from referrals, click here for more on that.

We track Net Promoter Score as part of our surveys and we also track Referral Source as a default question on our equipment install survey. Both these metrics are important to retention rates.

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