Keeping the customers you have today has never been more important for your online business.
While finding new customers and growing that side of your business is terrific, keeping your current customers and increasing their loyalty is cheaper for our business in the long run.
We’re going to look at retention marketing and your online business. They are a match made in heaven, and we’re going to explain why.
First, let’s look at some statistics on the importance of retention marketing.
The Value of Retention Marketing
If you’re one of the many businesses not currently working to retain your existing clients, we’re going to provide you a few reasons why it’s time to refresh your marketing strategy.
Here’s a few reasons why retaining current customers is “better” for your business than acquiring new ones.
- A 2% increase in customer retention has the same effect as decreasing costs by 10%.
- Acquiring new customers can cost nearly five times as much as making your current customers happy.
- About 80% of your profits will come from just 20% of your existing, loyal customers.
- If you reduce your customer defection or churn rate by 5%, you’ll increase your company’s profitability 25-125%!
- Nearly 70% of your customers will leave your company because they don’t think you really care or because you provided poor customer service.
- Companies that prioritize customer service generate 60% more in profits than their competition.
- When customers are happy, they will tell nine of their friends about it. On the flip side, when customers are unhappy, they’ll tell 22 of their friends.
Now that we’ve solidly convinced you of the importance of retention marketing and your online business, let’s look at some tactics that work. Continue reading “Retention Marketing And Your Online Business – A Match Made In Heaven”