Around 44% of businesses focus on customer acquisition, but only 18% focus on customer retention.
Studies show the probability of selling to a new customer is only between 5% and 20%. In contrast, existing customers are 50% more likely to try the company’s new product. The cost of acquiring new customers is around five to ten times more than retaining existing ones. These numbers indicate nurturing loyal customers is a powerful strategy that can help businesses grow.
Even though two-thirds of businesses agree customer lifetime value is a crucial concept in their organisation. But, only 42% of brands can accurately measure their customers’ lifetime value.
Email marketing is the most effective approach towards customer retention, around 56% more effective than other marketing methods. Email marketing is followed by social media (37%), content (32%) and referral marketing (27%).
[6 minute read]