Hey Fred, Long story short: I was writing a blog post about customer retention, and over and over, I found people citing a variation of the same stat "Only a 5% increase in customer retention can increase company revenue by 25-95%". And when I mean everywhere, I mean it's EVERYWHERE. Hubspot, Shopify, Mailchimp, Forbes, Time, Harvard Business Review - all just saying the blanket statement above. But when I tried to find the source, it took me about 45 minutes until I found the source, and I was pretty shocked to find it was from your article "Zero Defections: Quality Comes to Services," published over 32 years ago. After seeing how you feel the NPS score is misused, I assume you also will feel it's pretty irresponsible for over 4.8k sites to be linking to a customer retention study done in 1990 like it still universally applies to all businesses today. The original study is fascinating, but I would love to hear your thoughts on customer retention's impact on revenue & profit in 2022. Is this number likely more extreme? Or less with all of the attention split around the digital universe? I'd love to hear your thoughts, thanks!
Hey Fred,
Long story short: I was writing a blog post about customer retention, and over and over, I found people citing a variation of the same stat "Only a 5% increase in customer retention can increase company revenue by 25-95%".
And when I mean everywhere, I mean it's EVERYWHERE. Hubspot, Shopify, Mailchimp, Forbes, Time, Harvard Business Review - all just saying the blanket statement above.
But when I tried to find the source, it took me about 45 minutes until I found the source, and I was pretty shocked to find it was from your article "Zero Defections: Quality Comes to Services," published over 32 years ago.
After seeing how you feel the NPS score is misused, I assume you also will feel it's pretty irresponsible for over 4.8k sites to be linking to a customer retention study done in 1990 like it still universally applies to all businesses today.
The original study is fascinating, but I would love to hear your thoughts on customer retention's impact on revenue & profit in 2022.
Is this number likely more extreme? Or less with all of the attention split around the digital universe?
I'd love to hear your thoughts, thanks!