Keeping the customers you already have.
So many companies are focused on gaining new new customers (acquisition) rather than tapping into the customers they already have. While customer acquisition is important, customer retention is more lucrative. Here’s a few more reasons why it’s important to focus on retention:
It costs a company 5 times as much to acquire a new customer vs. retaining an existing one.
44% of companies have a greater focus on acquisition than retention.
The probability of selling to an existing customer is 60 - 70%. While the probability of selling to a new customer is 5 - 20%
Existing customers are 50% more likely to try new products and spend 30% more, compared to new customers.
Top marketing tactics for customer retention:
Social Media Marketing
Search Engine Optimization (SEO)
Digital Video Advertising
Increasing customer retention rates by 5% increases profits by 25% to 95%