No matter how great a business’s products and services are, they’re meaningless without customers. Customer acquisition costs are significantly higher than the costs to retain your current clientele. Therefore, it’s important to solidify customer relationships and help to grow revenue. After all, a company who increases customer retention by just 5% can increase profits by 95%.
Customer retention is more than simply holding onto current customers. It’s the strategies a company implements to actively increase the amount and profitability of repeat customers. Acquisition lays the foundation for customer relationships while retention develops those relationships into sales growth.