Long-term customers are more valuable to your company’s growth than you may think. A study from Harvard Business School found that increasing customer retention rates by even 5% can boost your company’s profits by 25-95%. And, when compared to the cost of customer acquisition, customer retention costs almost 5x less than bringing new customers under your umbrella.
That said, you’re losing out on business growth if you don’t focus on brand loyalty. Aside from saving you on customer acquisition costs, when you can establish a pool of customers who are loyal to your brand, you have an edge over your competitors. Your customers do your marketing for you, spreading good words about your product and service.
