measurement of customer retention should distinguish between behavioral intentions and actual customer behaviors. The use of behavioral intentions as an indicator of customer retention is...
With the burst of SaaS companies, products and digital marketing avenues, most growing firms have found themselves in a conundrum on how to balance customer acquisition and customer retention efforts. Though they know customer retention is important, many new companies tend to focus more on customer acquisition. I'd like to remind you that retaining a customer is much cheaper than acquiring a new customer. In fact, studies suggest that depending on the industry you are in, acquiring a new customer can cost five to seven times more than retainin ...
Customer acquisition and customer retention are two metrics used mainly to determine the return on investment (ROI) for efforts to monetize consumers. Both are essential numbers to track since they will show shifts in the market or problems with a marketing plan. The numbers are different in a few ways. Customer acquisition is the cost of converting a person into a paying customer. Determining the cost of acquisition requires dividing all expenses dedicated to acquisition by the number of new customers acquired over the same period. Acquisition ...
What is the cost of acquiring a new customer compared to the cost of keeping an existing customer? An interesting article, that puts it all in perspective about the money spent on constantly acquir...
Explore the cost-effectiveness and value of new customer acquisition versus retention strategies for sustained business growth. Learn more
Should you be spending less on customer acquisition and more on retention? We examine the pros and cons and take a deep dive into customer acquisition cost.
Why should your business try to keep customers coming back? We cover the benefits of customer retention and why your organization should prioritize it.
Enhance your long-term success strategy with insights on customer acquisition costs, CLV, and customer retention expenses.
Contrary to popular belief, revenue from retention is not free. ; Like there’s a cost of acquisition. There’s a cost of retention per customer. ; Acquisition costs are considered as a one-off payment for complete CLV (Customer Lifetime Value) ; Now we have acquired the customer, it will yield fruits in the future, free of cost.
Knowing who your most successful customers are and which acquisition channels or campaigns they come from helps you focus resources and attract more of them. ; Happy, long-term users are more likely to bring new customers to your app by telling their friends or using it in front of others. ; The longer a customer stays with your brand, the more potential touchpoints for monetization. Highly-engaged customers buy 90% more often and spend 60% more per transaction.*