Based on statistics from multiple surveys and studies, it can cost 5-10 times more to acquire a new customer than it does to keep an existing one.
If client retention costs less than client acquisition, then it only makes sense to focus a larger percentage of your marketing efforts on existing customers over attracting new customers. Everyone’s customer acquisition cost (CAC) is unique, but regardless of your own exact acquisition to retention costs, one of the primary factors of any successful marketing plan includes addressing how you’re serving, and marketing to, existing customers.
The first step is developing and implementing a customer retention strategy.
- Who are your most loyal customers?
- Why are they your most loyal customers? (I.e., What are you doing right with them?)
- What are they lacking from you?
- What can you amplify or improve?
- What would it take from your competition to sway your customers away from your brand?
- How are you fulfilling on your service and support promises?
Remember, your customers don’t owe you loyalty—it’s something your business earns (or loses) on a daily basis.
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