Post by account_disabled on Mar 4, 2024 2:01:33 GMT -5
Capture, capture, capture... Getting new clients has become almost a business obsession. It is not surprising, taking into account the high competitiveness of the current market. But what if the key to the success of a business is not so much in the search for new consumers as in customer retention? Currently, 60% of marketing investment is aimed at attracting consumers to the brand, compared to 40% allocated to customer retention, according to a study prepared by the IE University Loyalty Chair in collaboration with Inloyalty. However, according to Marketing Metrics , the probability of selling to an existing customer is between 60-70%; On the other hand, the possibilities of achieving a new consumer drop to a range of between 5 and 20%. Don't you think that strategic priorities should be reversed? Philip Kotler , considered the father of marketing, already said it : “The best advertising is what satisfied customers do.” Now, how do you get satisfied and loyal customers ? Discover the keys to customer retention.
CTA Post What is customer retention and why is it so important? Customer retention is a business strategy aimed at maintaining existing customers over time. That is, this practice seeks to build long-term relationships, generating customer loyalty and loyalty to the brand. Its rationale? Retaining customers is just as important, or even more, than acquiring new ones, and numerous studies on the subject attest to this. In fact, 65% of a company's business comes from Europe Mobile Number List existing customers, according to the Customer Service Institute , a figure that is also exponential. Thus, for example, increasing customer retention by just 5% can boost profitability by 75% , as noted in the report The Age of the Customer , by Hoovers. Hence, companies with high loyalty rates can improve their income by up to 95%. This is because existing customers are 50% more likely to try new products through cross-selling and spend 31% more, compared to new customers, according to data from Invesp. Customer retention is not only more profitable, but also cheaper.
Specifically, acquiring a new customer is five times more expensive than retaining an existing one. Furthermore, for the new customer to become a loyal long-term buyer, an investment 16 times greater than the effort dedicated to an existing customer is required, according to Review 42 . We must also not forget the role that satisfied customers play as brand prescribers. Did you know that 86% of loyal consumers will recommend a brand to their family and friends , according to KPMG ? A fact to consider, especially considering that, as Nielsen points out , 92% of people trust the recommendations of friends and family. One of the advantages of customer retention is that they act as brand prescribers. How to measure customer loyalty? As a consequence, measuring customer loyalty should be part of any company's strategy. How is this evaluation carried out? There are numerous KPIs that offer very valuable information about customer retention , such as customer lifetime value, churn rate, average recurring revenue, Net Promoter Score (NPS), etc.