“Every contact we have with a customer influences whether or not they’ll come back. We have to be great every time or we’ll lose them.” – Kevin Stirtz, Strategy Manager
Many companies invest more money in customer acquisition as they perceive it to be a quick and effective way of generating profit. However, this opinion has been disproven by multiple studies which have shown that it is in fact customer retention, and acquisition, that lays the groundwork for long-term, sustainable growth.
Attracting new customers can cost up to seven times more than retaining an existing customer. What’s more, the process of attracting, educating and converting new customers is far more time-consuming that reaching out to customers with whom you have already built a relationship.
As return customers spend more than new customers, retention campaigns tend to generate a superior better return on investment than acquisition campaigns. Return customers are also more likely to keep making purchases as they have more confidence in a brand whose services they have used before. According to one study, an increase of repeat customers of just 5% can lead to a 25 – 95% growth in profit.
Your retention rate is a measure of both customer loyalty and indicates your business’s ability to maintain customer satisfaction through good service and quality of the product sold. It’s important to dedicate just as many resources to retaining existing customers as to selling to new customers.
If you are interested in boosting your business’s customer retention rates, you should check out this highly informative infographic from the team at M2 On Hold. This nifty graphic features some great information including key statistics, expert insights as well as practical tips on how to improve your customer retention rates.
Read the infographic below to learn more about improving your customer retention rates.