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The Importance of Customer Retention

Many entrepreneurs and companies I meet with have growth goals of 15-50% for the upcoming year.

They ask, what can we be doing to increase leads and sales from channels like Google (organic SEO or Google Ads).

In some cases, its utilizing social media more effectively (in particular Facebook Ads or LinkedIn).

I’m all for new acquisition.

However, the fastest, more cost effective way to increase revenue is maximizing the lifetime value of you existing customers and/or existing relationships.

Let’s think about this.

When someone buys from you, they’ve already paid you three ways.

They paid you with their attention.

In some way, your marketing got their attention and as they started their buyer’s journey, they considered your product of service.

They paid you with their time.

This time could have been in meetings, consultations or it could have been by them them watching emails, reading your blog posts, or spending time on the telephone with your sales team.

They paid you with their wallet.

Keep in mind that, whether that was a dollar or whether it was $50,000, it takes a lot for us humans to extend 16 digits to a stranger.

To put this into perspective, examine these customer acquisition vs. customer retention statistics.

Customer Acquisition Vs.Retention Costs Statistics and Trends

Infographic by- Invesp

CONCLUSION

I’m encouraging you to to honor that trust and confidence that your existing customers have already placed in your product, service, or brand and deepen that relationship.

  • Think about what they’re going to need whether you sell it or not.
  • Think about what they’re going to need in 6 to 12 months and put them in touch with someone.
  • What pitfall is coming that they don’t see?

In the end, be a resources to you customers and stay top of mind.

If you don’t have a strategic process to increase the lifetime value of your existing customers, let’s chat.

If you have a system in place to continually increase the lifetime value of your existing customers, drop a comment below and let’s discuss.

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