Depending on which ‘expert’ you believe, the cost of acquiring a new customer can be four, six, ten times or more the cost of looking after the customers you’ve got. Whatever the number, one conclusion can be drawn. It is dramatically more expensive to recruit new prospects and convert them into buyers than it is to satisfy, engage and hang onto your current clients. The best way to do that is understand who your customers are and what they want from doing business with you.
Why Customer Retention is so Important
At its heart, retention is about knowing and understanding your customer base. This insight makes it possible to deliver a customer experience that responds to the product needs and service expectations of various customer groupings. Typical results include:
- Greater Engagement
loyal customers have more regular contact with favoured products or services;
- Share of Wallet
committed customers purchase more often and spend incrementally more;
- Organic Growth
satisfied customers are more likely to refer friends/family and share experiences;
- Positive Return
rewarding customer encounters significantly boost sales and revenue.
How Origins Deepens Customer Connection
Origins offers a completely unique view of your customer base. One that empowers organisations to connect with the values of its customers, according to their cultural background.
Culture is acknowledged as the overriding factor in how we all approach everyday life. So cultural norms form the basis for how customers respond to messages, interact with brands, process information and make buying decisions. Engaging with those cultural values is an effective strategy to create a resilient, long-term customer bond.
In today’s multicultural Australia, 26% of the population was actually born overseas. In Melbourne and Sydney, more than 40% has strong cultural bonds to a community that identifies with heritage other than Anglo-Celtic. By determining the most likely cultural origin of customers, any businesses can gain important insights about:
- Customer diversity
- Market benchmarks
- Success and opportunity by cultural segment
- Where they live, and where more can be found
- Trade area diversity.
This cultural dimension of customer data provides a unique opportunity. The chance to build a retention program that engages customers well beyond the product or service level. One that consists of culturally appropriate communications, demonstrating customers are valued and resulting in successfully nurtured enduring relationships.Back to blog