Thought Leadership

Customer Retention, not Customer Acquisition, is Going to Help Your Business More. Here's Why

Jul 24, 2018
Humans are hardwired to prefer new things just because, well, they’re new. In a business sense, this led to the obsession with chasing new nets to drive business growth. While it’s only natural to be constantly on the lookout for potential customers, your customer outreach efforts aren’t exactly the best growth driver—your existing customers are.

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It’s cheaper to maintain existing customers.

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Let’s start with the fact that it costs five times more to obtain a new customer than to keep an existing one. Despite this, only 18% of companies have a more focused approach to customer retention as compared to the 44% that zero in on customer acquisition. This means you don’t have to spend too much time and resources in finding a new client—you just have to keep the one you have happy.

 

Loyal customers are excellent profit drivers.