Management Bug
By definition, customer retention is the process of engaging existing customers to continue buying products or services from your business. (1) Neglecting existing customers to pursue new ones is a common mistake. While customer acquisition is vital for business growth, meeting the needs of your existing customer base can be just as critical. (3)
Current customers are significantly more likely than the average consumer to spend more, buy more, and recommend your brand to others. Increasing customer retention by 5% can increase company revenue by between 25 and 95%. (2)
Suppose your company doesn’t have a strategy to retain customers. In that case, your company will lose the possibility to increase the profitability in several ways that you might not realize and will yield benefits associated, like:
- Upselling opportunities,
- New customer acquisition,
- Repeat purchases,
- Increased revenue,
- Profitable growth
- Save Money On Marketing;
- Free Word-Of-Mouth Advertising;
- Retained Customers Will Provide Valuable Feedback;
- Previous Customers Will Pay Premium Prices. (4)
