Fixing the leaky bucket.
Customer retention may be the #1 contractor marketing problem, regularly (and mathematically) preventing you from reaching the next level in sales.
Contractors find that prior to pro-active Customer Retention, efforts to build sales die after a short burst, marketing costs and initiatives continue to balloon… but sales stay flat.
After installing a customer retention program, they get higher repeat sales, higher average tickets, and far greater referrals. This greatly increases marketing efficiency, bottom-line profits, while reducing stress. All this results from regular reminders and relationship builders that drive loyalty, branding, and sales.
It’s about ROR. ’Return on relationship’ is the new marketing currency that’s fueling fortunes.
Over time, contractors naturally focused on getting new customers. Aggressive marketing can generate a 15% customer increase. So far so good.
But you’re not often told that the average contractor currently loses 11% of current customers each year. So you’re losing high-value, paid-for customers – who head straight to competitors - netting only 4% ‘new’ customers. The new customers shop more, buy slower, and pay less.
You also paid $225-275 for each new one, when you could’ve invested just $12 to keep your existing ones. Now you can see why hitting the ‘next level’ is almost mathematically impossible without a Customer Retention program.