4 articles with this tag
High-value customers represent the clients on whom business survival and profitability depend. Using the 80/20 ratio, these customers contribute 80 percent of total value. Retaining high-value customers through strong relationships, anticipating needs, and excellent service costs far less than acquiring new customers.
Jason Lemkin of Storm Ventures says customer success is where 90% of revenue comes from - the post-sale relationship, not the initial sale. Customer success is proactive (preventing problems) versus customer service which is reactive (fixing problems). Lincoln Murphy identifies eight elements for systematic management, while five organizational models suit different company stages from startup to enterprise.
Gartner reports 80% of future revenue comes from 20% of existing customers - yet most B2B companies allocate only 20% of marketing to retention. Customer onboarding encompasses the entire journey from prospect to loyal customer. Nielsen shows 92% of consumers base purchases on peer reviews, and McKinsey finds 50% of purchases are influenced by recommendations. Properly onboarded customers become vocal advocates.
Reducing churn by just 5% can boost profits 25-125%. McKinsey found U.S. wireless carriers could increase earnings 9.9% by reducing customer churn. HubSpot kept 33% of unhappy customers through monthly reviews, while Mention reduced support time 50% by prioritizing clients and batching tickets by timezone.