Effective Small Business Management 10th Edition by Norman Scarborough

Exercise 10

With a 70 percent customer retention rate (average for most U.S. firms according to the American Management Association) every $1 million of business in 2005 will grow to more than $4 million by the year 2015. If you retain 80 percent of your customers, the $1 million will grow to a little over $6 million. If you can keep 90 percent of your customers, that $1 million will grow to more than $9.5 million. What can the typical small business do to increase its customer retention rate