Why do we spend so much money on customer acquisition marketing when customer retention marketing works so much better? We can all agree that customers are the most important part of any business. After all, without customers, there would be no business!
And yet we find ourselves spending most of our marketing dollars on finding new customers instead of nurturing the ones we already have. Yes, your business needs new customers, but not at the expense of the ones you already have. It’s an ongoing struggle as you think about your business goals.
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For many business owners, hard facts are worth more than anecdotes and assumptions. Read the customer retention and acquisition stats below to see the differences between the two.
Customer acquisition & retention marketing stats
- Acquiring a new customer can cost five times more than retaining an existing customer.
- Increasing customer retention by 5% can increase profits from 25-95%.
- The success rate of selling to a customer you already have is 60-70%, while the success rate of selling to a new customer is 5-20%.
Customer retention marketing opportunities
There’s an opportunity here to focus more on existing customers, rather than chasing down new ones.
- One customer experience agency found loyal customers are 5x as likely to repurchase, 5x as likely to forgive, 4x as likely to refer, and 7x as likely to try a new offering.
- U.S. companies lose $136.8 billion per year due to avoidable consumer switching.
- American Express found 33% of customers will consider switching companies after just one instance of poor customer service.
By simply automating the process of content marketing, email marketing, and social media marketing, you can see success in multiple ways:
- Staying in touch with your current customer base.
- Reminding their customers of upcoming events and seasonal tips.
- Maintaining a professional appearance all the way to the inbox and beyond.
- Taking advantage of opportunities to reach out to clients you have not talked to in years.
- Getting more referrals sent your way.
We’ve put together a super informative (and free!) guide all about how long-term relationships and loyal customers benefit your business. It includes useable email templates, ways to have better conversations and follow up tips to help you stand out and stay in touch.
Customer retention marketing is essential to the success and growth of your business. If this free guide leaves you with more questions, our team is ready to answer them. In addition to content marketing, we can help grow your referral business and gather reviews, plus much more.
Last Updated 2/28/2019