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Sales & Marketing

Customer Retention: The Golden Goose in Distribution Has New Demands

What distribution customers want and expect has changed rapidly in the past five years. Kevin McGirl explains how distributors can keep up.

July 1, 2022

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What distribution customers want and expect has changed rapidly in the past five years. Kevin McGirl explains how distributors can keep up.

What distribution customers want and expect has changed rapidly in the past five years. Kevin McGirl explains how distributors can keep up.

Within distribution, it is understood that customer retention is more cost-effective than new customer acquisition. It’s also the more profitable target for revenue growth, as research shows that a 5% increase in customer retention can lead to a profit increase from 25% to 95% (Bain & Co.). That means that prioritizing nurturing customer relationships is fundamental to a successful year, but even basic customer retention efforts are made more challenging by conditions in the industry today. To retain customers, you must work to understand them so that you can learn what they need from you…

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