Customer Retention is way more cost-savvy as compared to customer acquisition. It costs 5 times more to do the latter.
Additionally, existing customers are much easier to sell to, the probability of an existing customer buying your products is 60-70%, whereas the probability of getting a new prospect to buy your product is a mere 5-20%.
So, why are businesses still so focused on persuading new prospects who have no idea what the business is about when they could be using that time to strengthen their relationships with returning customers?
Additionally, existing customers are much easier to sell to, the probability of an existing customer buying your products is 60-70%, whereas the probability of getting a new prospect to buy your product is a mere 5-20%.
So, why are businesses still so focused on persuading new prospects who have no idea what the business is about when they could be using that time to strengthen their relationships with returning customers?
According to the Gartner Group, 80 percent of your future profits will come from just 20 percent of your existing customers. That means the revenue sources you’ve been trying to find are most likely sitting right under your nose, waiting to be nurtured and cultivated.
Our info graphic below highlights the numbers that you would need to see, and would want to rethink your marketing strategies.
Need more insights about customer retention? Hit us up! We are more than happy to connect with you :)
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