Customer retention: 5 reasons why you should focus on it
5 reasons why you should focus on customer retention
Customer retention is satisfied and loyal existing customers that continue purchasing from your business over and over again.
Why retaining customers is so important?
Improving customer experience helps with customer loyalty, plus you gain revenue benefits. On average, acquiring a new customer costs 5x more than retaining an existing customer. However, increasing customer retention rates by just 5% can boost your revenue by 25% and up to 95%.
Repeat purchases = Repeat revenue
Retained customers who purchase frequently tend to spend up to 35% more than random customers, raising the lifetime value. To please existing customers, note their purchasing history and, with the Exposebox AI-based engine, recommend related products to encourage conversion.
Easy up-selling and cross-selling
Businesses find it simpler to up-selling and to cross-sell products to loyal customers. Once shoppers are satisfied with your brand, they like to explore more and buy more. In addition, customers don’t go for many comparisons of products when they trust your business.
Better communication with customers
Customer retention is a powerful tool for good communication with customers. An engaged customer for the long term shares their valuable feedback about his brand experience. Always remember that retention is a way of thinking, not a single action or decision. An efficient retention strategy is constructed to accomplish the goal of retaining more customers. Through a mixture of tactics and Exposebox marketing tools, you can quickly integrate and unleash the success you’re looking for.
Conclusively, customer retention is not an individual decision you execute. Rather, it’s a combination of strategies that draft to encourage customers to prefer you over your competitors.