Why should you focus on user retention vs user acquisition?
Your existing customers have a huge value to your business, so keeping a steady relationship with them is important. But, many small businesses spend most of their marketing budget acquiring new customers instead of retaining the existing ones.
Here are some stats
- Acquiring a new customer can cost 5x more than retaining an existing customer.
- Return customers spend 57% more than new customers.
- On average, return shoppers are just 39% of total traffic.
The numbers show that retained customers are more profitable than acquiring new ones.
So what exactly is customer retention?
To put it simply, it is a marketing strategy approach that encourages repeat purchases to keep the customers coming back. The longer your customers stay retained, the cheaper your marketing efforts will be. While retaining customers is a good start, it’s not enough – investing in a great customer experience will make all the difference. One of the most important factors to retain customers starts with a perfect UX layout, easy onboarding – all this helps build trust for your brand and want them to come back repeatedly.
Customer retention helps to achieve a higher ROI
Client retention is your main source of revenue; the chance of selling to existing customers is ~65%, whilst the chance of selling to a prospect is as low as ~5%. In conclusion, shifting your strategy focus will help you get more from your marketing plan. Simply communicating personally with your customers by email, SMS, and social media channels will help you gain the success you’re looking for.
The Exposebox retention console
Exposebox combines a predictive customer model, AI-based algorithms and machine learning capabilities with advanced omnichannel marketing automation technologies to help businesses maximise customer retention and lifetime value. We offer various marketing channels to choose from social media marketing, search engine advertising, Messenger, SMS, popups, email marketing and more. Combine these channels to increase your marketing reach with 1:1 personalisation.
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