An even harsher truth is that, sooner or later, your customers may just … leave!īecause if you stop trying, your customers start feeling that you no longer care about them. The most common pitfall for businesses around the world is that they think that if they have a great product or service, then customer retention will follow naturally.Īnd, while this might be the case in some instances, the harsh truth is that it’s only a short term strategy. So why do we keep on spending more money on getting new customers? Customer acquisition vs. Yet, we keep on hearing, time and again, that it’s cheaper to keep existing customers than acquire new ones.Īllow me to remind you of just 1 killer fact: according to Marketing Metrics, the success rate of selling to an existing customer is 60-70%, while the success rate of selling to a new customer is only 5-20%! To do this, they need to sell more, which, in turn, means – they need more clients.Īs a result, very often salespeople get so focused on gaining new customers that they fail to effectively address the need to retain those they already have. Here, we share 7 practical customer retention strategies that you can use to keep your existing customers happy over the long-term and increase your profits.įor people who work in sales, the number one priority is to find new ways to increase revenue. The biggest challenge for many companies is where to begin.
So, why are companies spending most of their budgets on generating new customers? Yet, selling to an existing customer is 6-7 times cheaper. Investment in customer acquisition far exceeds investment in retention.The more customers that you can keep and continue to sell to, the more likely you are to achieve your business goals. The difference between companies that grow and those that don’t is customer retention.
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