Customer Acquisition vs. Customer Retention. Which Is More Important?

Selling may mean acquiring new customers, but truly successful companies are exceptional at keeping the ones they have. One reason is simple: finance. Loyalty sales campaigns can provide success rates as high as 70%.1 Here are a few additional points to consider:

The key to making strides in your customer-retention strategy is showing that you care. Not only can it lock in the sale, referrals and repeat business – it can multiply over time, resulting in long-term profit and growth.

Thank customers and remind them again why they’ve made the right decision to buy from you. Put a “reminder system” in place. Whether you offer free upgrades to increase loyalty, invite customers to “Exclusive Closed-Door Sales,” or simply send them birthday and other cards with coupons or gifts – rewarding your customers cannot be over-valued.

Customers are looking for honesty and integrity, with higher-than-expected levels of service.2 What this means to you as a business owner: dedication to customer service by every employee; providing immediate response; no ethical shortcuts; no passing-the-buck; consistent on-time delivery; keeping your promises before AND after the sale.

It helps to view a customer complaint as a gift. Dissatisfied customers don’t always complain; many often simply walk away. As long as customers are talking to you about what’s wrong, you have an opportunity to show them you care about their business and hopefully turn them into customers
for life.

1James, Geoffrey, “Best Way to Keep Customers from Leaving,”, July 6, 2012.
2Clay, Robert, “20 Customer Retention Strategies,”, retrieved March 14, 2014.

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