Businesses often focus on acquiring new customers but don’t do as much about keeping current ones. What they don’t realize is that they have up to a 70% chance of selling to current customers as opposed to only a 20% chance of selling to new customers.
Balancing Customer Acquisition vs. Retention
But does this mean businesses should focus on customer retention rather than acquisition? It depends on how mature a business is. Well-established companies should work more on retaining current customers, while startups should spend more effort on acquiring new ones. If your business is somewhere in between, striking a balance is the best approach. Here’s how to balance customer acquisition vs. retention :
1) Assess your current customer base
Not all current customers are worth keeping, so identify those you want to hold on to (like repeat/loyal customers) and those you can weed out (like one-time customers).
2) Turn to online marketing
Both new and current customers are on the internet, making them easy to reach with one go. Social media posts or email campaigns are the usual methods.
3) Keep your current customers engaged
Current customers can be a great source of word-of-mouth marketing. If you make them feel happy and valued, chances are that they’ll tell other people about your business which leads to new customers for you.
To learn more about balancing customer acquisition vs. retention, check out this infographic from First Data.