Companies lose between 10-30% of their customers annually.
It is the #1 priority of CMOs and CEOs according to Forbes Insights’ and Coremetrics’ survey of 321 marketing executives from the U.S. to the U.K. There are two reasons why. The most common reason is that it costs more to convert a prospect than to retain an existing customer. The lesser-known reason is that a small increase in your retention rate increases profits exponentially.
LS Direct Marketing has an array of capabilities and tools for optimal customer retention. Our premier tool, Boomerang Direct, is reaching over 1 million customers with individualized direct mail.
LS Direct Marketing is a true technology and data management partner. Any analytics company can crank out basic metrics reports. Given our retail, printing, and advertising knowledge, we help you understand the influence of your campaigns beyond the spreadsheet, making practical application on the marketing tools that are most profitable for you.
“In a typical company, customers are defecting at the rate of 10-30% per year; employee turnover rates of 15-25% are common; and average annual investor churn now exceeds 50% annually. If we see people as assets, rather than expenses, they will pay an ample rate of return. For example, across a range of industries, the average of a 5% improvement in customer retention will yield a 25 to 100% increase in profitability.”
-“The Loyalty Effect” by Fred Reichheld
Customer Retention Tools & Tactics
Direct Mail and Email Campaigns
Landing Pages and PURLs
QR codes and Phone Apps
16, 32 & 40 Page Catalogs
A nationwide retailer, using Boomerang Direct, experienced a 57% improvement in customer retention within 18-months. What is more, this aggressive promotion campaign did not erode the overall sale. Instead, the average ticket remained virtually unchanged ($765 vs. $763).