From QueenCityMedia: Is customer retention more important than customer acquisition?
Often times, businesses place too much focus on acquiring new customers rather than nurturing and retaining the clients that they already have. With the ever-rising cost of customer acquisition, it’s extremely important to ensure the retention of existing clients.
A study by the U.S. Small Business Administration and the U.S. Chamber of Commerce found that acquiring new customers costs as much as five-to-seven times more than the cost of retaining existing clients. That number is steadily rising, so it should serve as a major incentive for businesses of any size to allocate more funding into various retention strategies.
Furthermore, the Harvard School of Business found that increasing customer retention rates by as little as 5% could increase profits from 25%-95%.
