Archive for the ‘retention’ Tag

The consumer cycle and retention

Not following up is one of the biggest marketing sins you can commit. Here are some statistics which should scare the living daylights out of all of us.

48% of businesses never follow up with a prospect

25% of businesses make a second contact and stop

12% of businesses only make three contacts and stop

It’s a staggering discovery, but only 10% of businesses make more than three contacts. It means they’re losing a small fortune – and you could be too/

Because…

2% of sales are made on the first contact

3% of sales are made on the second contact

5% of sales are made on the third contact

10% of sales are made on the fourth contact

80% of sales are made on the fifth to twelfth contact

So if you’re like almost half of all businesses and make no more than one follow-up to your prospects… you’re leaving 98% of your income on the table for someone else to come along and pick up.

If that wasn’t bad enough, here’s why it’s even worse than you think. Look at these eye-opening statistics about why people stop buying from businesses:

1% die.

3% move away.

5% follow a friend’s or relative’s recommendation.

9% find an alternative they perceive to be better quality or value.

14% are dissatisfied with the products or services.

And a massive 68% of people leave a business because of…  indifference.

They take their business elsewhere simply because they do not feel valued.

Since you spend a lot of time, money, and effort to get a visitor to your business, if you let them leave because of indifference, you might as well be flushing £10 notes away.