Have you ever considered what turnover does to your business? Many industries have high employee turnover rates which leads to a number of issues least of which is quality. But what about customer turnover? In the cleaning industry, it’s somewhat of a given that you can expect some turnover year over year within your customer base. Although the amount of turnover can fluctuate due to a variety of different conditions, what would lowering the rate of turnover mean for your business? Let’s look at the following scenario:

Acme Cleaning Corporation is a mid-sized local cleaning company with an annual revenue stream of $2 million dollars. They experience, on average, approximately 4% year-over-year turnover. The president of Acme has challenged his staff to grow the business by 8% the next fiscal year. What does this mean for the business?

• In order to grow 8%, they have to have REAL growth of 12% to account for the 4% of lost customers due to turnover.
• The best growth the company has EVER been able to achieve is 7% growth, meaning a net 3% growth. This historical fact makes the challenge of growing even stronger!
• In this example, a 4% drop in customers represents the equivalent drop in revenue, or $80,000.

If Acme could retain 1% of it’s current customer base? A 1% decrease in the amount of turnover represents an immediate savings of $20,000 in revenue based on our stated assumptions! Furthermore, it also means that when growth occurs, it can be reflected as growth rather than “catch-up”.

This illustration demonstrates in very simple terms just how important customer retention is for your business. Of course, you already knew that but now you have a solution to help you achieve your goal of higher retention: ServicePortal!

The value of ServicePortal can be summarized in a very simple formula:
Improved Service Quality + Improved Productivity = Improved Customer Satisfaction. The results of this formula are Higher Customer Retention and Increased Profitability.

To learn more on how the ServicePortal Solution can help your business, please contact us. Our Sales Associates will show you how ServicePortal’s unique and powerful offering can help you streamline your communications and operations to help you achieve greater savings and profitability!