Organizations rely heavily on data today: to make well-informed decisions faster, minimize risks, maximize profits, and, importantly, acquire and retain new customers. A small increase in customer retention can lead to significant cost savings.
For example, if a business has a customer retention rate of 50%, a 2% increase in retention (to 52%) would result in a 4% increase in overall revenue, since the business would be retaining more of its existing customer base. This revenue increase would likely be accompanied by a corresponding decrease in marketing and customer acquisition costs, resulting in a net cost savings for the business.