Keeping your customers

It costs less to retain than acquire a customer.

But you know that already.

The Australian Communications and Media Authority cited research that:

• Increasing retention by only 2% has the same effect on profits as having to cut costs by 10%;
• Reducing defection by 5% can increase profits by as much as 125%; and
• It costs 5-7x as much to acquire as retain customer.

Added to that, a customer leaving is unnatural. Why? We're built to leave things as they are. It's our status quo bias.

So if they're leaving, something must be pretty wrong. 

In this video I describe four strategies to retain your customers.

1. Increase motivation to stay
2. Decrease motivation to leave
3. Make it easy to stay
4. Make it difficult to leave

I also discuss status quo bias, loss aversion, sunk cost, intrinsic and extrinsic rewards and sludge.

Want to learn how to influence customer behaviour? Join my Influencing Action online program and learn the behavioural science of getting people to take action.