Generating brand, product and service advocates is paramount for small businesses seeking to grow company revenue and meet long-term growth goals. Working with small businesses on a daily basis has given me a deep appreciation for the impact that loyal customers and brand advocates can have on a business. It is important for small businesses to use their resources and time to keep their loyal customers loyal.
A study conducted by Fred Reicheld of Bain & Company, Inc. stated that “a 5% increase in customer retention produces more than a 25% increase in profit”. For many companies, this correlation between customer retention and profit could result in hundreds of thousands of dollars in annual revenue gained. And, not only do loyal customers mean continual revenue, but they can become a powerful source of word-of-mouth marketing and promotion for a company or brand.
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