Increase Your Profit With Customer Retention Tactics

Did you know that it costs five to seven times more to acquire a new customer than to keep existing one? Or that a loyal customer is worth up to ten times as much as their original purchase (or sometimes even more)? Given these two statistics alone, it makes sense to take a look at your customer retention approach.

Many of us have heard about customer retention before. We know it exists. But with all the buzz around the constantly changing digital world (and how to keep up), it can be easy to forget. The first rule of business is to keep existing customers by building relationships with them, thus avoiding acquisition costs. However, many companies’ first (and only) marketing strategy is to attract, nurture, and close new customer accounts. But why?

Maybe now is good time to look at some retention statistics and tactics.

“Currently, 44% of companies have a greater focus on customer acquisition compared to 18% on customer retention, and 40% have an equal focus on acquisition and retention.”

Channels Used More for Customer Acquisition than Customer Retention

More Customer Retention Facts:

• It is 5-7 times more costly to acquire a new customer than it is to keep an existing one.
• Loyal customers are worth up to 10 times as much as their first purchase.
• 89% of companies say customer experience is a key factor in driving customer loyalty and retention.
• Increasing customer retention rates by 5% can result in a 25-95% increase in profit.
• Existing customers are 50% more likely to purchase new products and spend an average of 31% more than new customers.
• The likelihood of selling to a prospect is 5-20% compared with 60-70% probability of selling to an existing customer.

How Marketers Are Using Channels for Retention and Acquisition

Given these facts and information, it just makes sense to have a well-developed and planned customer retention and growth strategy, yet many businesses do not. If your business would like assistance developing a customer retention plan and execution strategy, consider partnering with Cain & Company. We’d be happy to help you create and implement a plan that suits your needs and your budget.

Sources:
https://econsultancy.com/marketers-more-focused-on-acquisition-than-retention/#i.1iuztbw1504fas
https://www.invespcro.com/blog/customer-acquisition-retention/
https://www.smartinsights.com/guides/retention-planning-guide/