Almost three-quarters (71%) of SME marketing agencies don’t know how much revenue they lost in the last financial year from lapsed customers. That’s according to YouGov survey commissioned by mar tech agency GI Insight.
This leakage can be a significant issue for smaller agencies when a 5% increase in customer retention rates is estimated to equate to an approximate 25% increase in profit, according to Bain & Company research.
GI Insight also found that where SMEs were aware of the number of customers that had dropped off in the last financial year, the median revenue lost as a result was £100,000.
MD of GI Insight, Andrew Adkins, commented: “As marketers we’re obsessed with the new, and winning new customers, but as our research shows we need to focus more on retention. We could at least start by keeping track of how many clients we lose in a year! We believe that marketing should be simple, and it should work. That means attracting new customers, but equally it means holding on to the ones you’ve got.”