Long-term relationships with existing customers generate profits

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It is generally considered that the cost of acquiring new customers (marketing and sales costs) is higher than the cost of upselling and cross-selling to existing customers .

Statistics show that it costs five times as much to acquire a new customer as it does to promote sales to an existing customer.

The more customers who continue to use your service over the long belgium whatsapp number data term, the more stable sales you can expect while keeping marketing costs down.

This is where NRR, which identifies the trends of existing customers, comes in.

2. Understand the stability of your business model
The higher the NRR , the more stable the business foundation.

Businesses that rely too heavily on sales from new customers run the risk of experiencing a sudden drop in sales due to changes in the external environment or the entry of competitors.

On the other hand, strong relationships with existing customers can help mitigate that risk.

By regularly tracking your NRR , you can get a numerical indication of whether your service or product is truly indispensable to your users.

3. Directly impacts company value
Investors and financial institutions also consider NRR to be an important evaluation indicator for SaaS companies and subscription-based services.

From an investor's perspective, what is important is whether or not stable future profits can be expected, such as low cancellation rates and high renewal rates, rather than simple sales growth.

Therefore, it is no exaggeration to say that the NRR figure has a direct impact on corporate value.

Measures to improve NRR
So what specific measures can be taken to improve NRR ?

In this chapter, we will explain the specific measures.

1. Enhanced customer onboarding
When customers have difficulty starting to use a service, it is not rare for them to cancel their subscription.

Easy to follow tutorials
Email and video usage guides
Strengthening support immediately after starting use
By doing things like this, you can help customers smoothly experience the value of your service and prevent early cancellations.

2. Strengthening the Customer Success Team
To encourage continued use, it is important to accompany customers to ensure they use the service and achieve results.

Dedicated Customer Success Manager
Hold regular online meetings and webinars to share use cases
Analyze the issues facing each customer and make appropriate proposals
By communicating with customers regularly in this way, you can reduce the risk of cancellations and increase the chances of upselling and cross-selling.