“If customers feel seen and understood, they’re likely to be loyal”, a recent article from Entrepreneur states. “Data powers the future of customer engagement”, reads another.
Open a random business news website these days and there’s a big chance you’ll come across an article stating the competitive power of data to boost retention amongst customers.
Still, genuine belief in marketing is that growth equals new customers.
But new customers aren’t the only gateway to growth.
Companies that want to be profitable in the long run, should prioritize investment in current customers and learn to master the art of retention.
Why is retention more important than ever?
Because the numbers back it up.
👉 Attracting new customers costs on average 5 x more than keeping an existing customer. (Bain & Company)
👉 Companies that increase their customer retention by just 5% experience a profit increase of 95%. (Bain & Company)
👉 In general, 40% of an e-commerce website’s revenue is generated by only 8% (repeat buyers) of its customer base (Adobe)
👉 The top 3% of customers spend 3x more on average than other customers. (RJ Metrics)
It is not by chance that a lot of successful on- and offline companies resort more to retention strategies these days as the marketing landscape is changing fiercely.
We gathered & identified 23 ways a company can adopt retention tactics to boost revenue & profits.