There’s a common misconception that businesses need to acquire new customers if they want to make more money.
Getting new customers is obviously beneficial and can help your business grow. But that’s not the only way to boost your profits.
Focusing on customer retention is a much more viable and cost-effective marketing strategy.
In fact, it will cost you six to seven times more money to acquire a new customer than it will to retain an existing one.
Not only is retention cheaper than acquisition, but it also has a very high ROI. Research shows that you can increase your profits anywhere from 25-95% just by increasing your retention rates by 5%.
Imagine how much more money you’ll make if you increase those retention rates by 10% or even 20%.
Don’t get me wrong: I’m not saying you should completely ignore your acquisition efforts. But if you are looking for ways to market your company on a budget, it’s in your best interest to focus on your existing customers.
Take a look at these loyalty statistics for ecommerce brands:
As you can see, customers who have made multiple purchases with a brand have a higher add-to-cart rate and conversion rate than new shoppers.
These customers also generate more than six times the revenue per session than new shoppers.
So it… Read More