I recently read a very interesting article on customer relationship management from December 2001 by Benjamin Mucci. I learned many insightful statistics from this reading.
The first of these is: “A 5% increase in customer retention rate can result in a 60% increase in profits over a 5-year period,” according to Benjamin Mucci. This statistic changed the way customer relationship management was viewed in the 1980s and highlights the cost effectiveness of retaining customers compared to acquiring new ones.
Another significant statistic was: “The implementation of technology infrastructure for CRM management ranks third in importance for both medium and large-sized companies.” This shows how crucial CRM has become for many businesses, no longer seen as an option but a necessity.
One last statistic that stuck with me was: “A study by the Rockefeller Foundation on the reasons for customers leaving a supplier found that
14% left due to an unresolved complaint,
9% due to competition,
9% because of a change of location, and
68% for no special reason.
” This highlights the importance of managing customer relationships even after a sale has been made and providing proactive service and support.
Benjamin Mucci’s conclusion was that it’s important to see CRM not just as a tool but as a strategy for the company and the marketing sector. At BSP, we believe that regardless of the type of business you have, customer relationship management should be a priority. For more information, please contact us.
