In the face of the ongoing U.S. economic downturn, it's never been more important to retain your current customers.
The U.S. economy contracted by 0.6% in Q2 2024, and consumer confidence has dropped nearly 10% year-over-year. Inflation remains high at 4%, with interest rates around 5.5%—the highest since 2007. Looking forward, many economists forecast further slowdown, with a potential recession looming in 2025.
During times like these, customer retention is critical, particularly for customers on annual or multi-year contracts. Acquiring a new customer can cost 5 to 7 times more than retaining an existing one, and improving retention by just 5% can increase profits by 25% to 95%.
As new business becomes scarcer, focusing on solidifying your base of loyal customers is essential. If you don’t have full clarity on which of your annual or multi-year contract customers might churn at renewal, you aren’t doing enough. With rising costs, it's critical to have real-time insights into customer satisfaction and behavior to address concerns before they turn to a competitor.
Now is the time to double down on retention strategies and protect your existing revenue streams
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