ROI: Retention, Referral and Cross-Selling Payback
The payback from our services at Active Retention is extraordinary!
We guarantee – in writing – that your project will produce at least a 300% Return-On-Investment (ROI) in the first year from the Retention, Referral and Cross-Selling actions.
A realistic scenario is outlined in the example below.
Example for Retention Payback:
Let’s analyze the ROI which results from an increase only in retention/loyalty. Consider an organization with 400 key accounts with average revenue of $25,000 each. In our example, the organization already has good retention, at approximately 94% 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 $200,000 of revenue (8 x $25,000), 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 500% ROI in its first year (and, as our client have all seen, most often 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.
That’s why it’s easy for us to guarantee a 300% ROI for every project, in writing.