“The grass is always greener.” The saying applies to many situations in life and marketing is no exception. Today, there’s so much focus on customer acquisition, but in many cases, merchants already have the most valuable players in their current networks. While bringing in new business will always be important, successful brands are focusing more on delighting existing loyal customers vs. attracting new ones.
To see this, one only needs to look at the numbers. A whopping 44 percent of companies have a greater focus on customer acquisition, while only 18 percent focus on retention, according to Invesp. Additionally, research from Bain & Company shows that increasing customer retention rates by only five percent increases profits by 25 to 95 percent.
