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When it comes to customer acquisition vs. customer retention, one is much more important than the other. Focusing on retention forces a change in thinking about the process of meeting business goals. Customer retention marketing is essential to the success and growth of your business.
Once you make a sale, turning that customer into one who remains loyal to your business should be the goal of the transaction. Retaining a loyal customer comes with benefits that include fewer expenses; its faster to sell to an existing customer.
By building a base of loyal customers, you don't have to build initial trust for every transaction.
When you switch your focus to making the customer, the sales process becomes much quicker. By building a base of loyal customers, you don’t have to build initial trust for every transaction. This continues to generate more business in the future, as well, in the form of future transactions for existing customers and referrals to new ones.
In addition, a loyal customer can be a beneficial form of advertising. When it comes to their investments and products, customers always speak their mind and want to hear from others about different experiences, products and services. Because of this form of advertising, when your customer retention increases so does your profitability.
Customer acquisition, or “making the sale,” is critical in a start-up business or when you’re trying to first build a clientele. Once you’ve accomplished creating a good customer base, however, “making the customer” or customer retention is most important. The larger your customer base, the more important retention becomes.
Treat your customers well, and you will quickly notice the benefits!