ROI: Retention, Referral, and Cross-selling Payback

Let's analyze the ROI which results from an increase in just retention/ loyalty. Consider an organization that has 400 key accounts, with average revenue of $100,000 each. In our example, the organization already has good retention, at approximately 92% for 12 months. For every 1% increase in the retention rate four accounts will be retained annually (1% x 400). When this organization increases its retention by 2%, it saves 8 key accounts (2% of 400), worth $800,000 of revenue (8 x $100,000 revenues), in the first year. With the cost of our services for this project at approximately $40,000 for these 400 commercial accounts, this project has a 2,000% ROI in its first year (and as our client have seen, a 300% payback within the first 60 days) just from retention! Your organization then benefits from the additional Referral and Cross-Selling leads identified in your project.