Making a decision about whether to focus on customer retention or customer acquisition is a key element of running any successful company, and you have to give a lot of thought to this. Both of these are absolutely vital areas of the business that you cannot overlook, and it is essential to make sure you develop a strategy that allows you time to think about both. But, you also need to understand what this entails, as well as why both of these things matter so much.
Your approach to business, and business marketing, should be all about focusing on the customer and their wants and needs. Now, it is essential to attract new customers, but it is also important to retain existing ones as well, and this is something you need to think about right now. Teaming up with 3SIX5 Digital because they are a leading digital marketing agency in Kent is a great way of tweaking your marketing plans to appeal to both existing and brand new customers. Let's take a look at the case for retention and for acquisition, and then try to determine which is a better focus for your business.
Repeat business is what helps companies thrive. It's what can help turn a company from as dinky startup to a multi-billion dollar global franchise. Keeping the customers coming back over and over is the million dollar secret in business, and this all starts with focusing on customer retention. There are a number of ways to do this, such as focusing on things like special offers, discounts, and brand evolution, and this can make a major difference to the way people experience your business.
Customer retention matters so much because it helps you to develop and maintain a loyal group of regular customers who you can rely on for business over the years.
Acquiring new customers is hugely important because you need to keep relevant and modern as a brand. People's tastes change and buying habits evolve and grow over time. People expect more from businesses these days than ever before, and by making the changes necessary to attract new customers, you can update and evolve the brand in the most effective way possible.
Customer acquisition is essential for moving forwards as a brand and avoiding standing still, so this is something you have to make sure you spend time on as well.
Well, ideally you will want to be focusing on both of these areas, as they are equally important, and vital for the growth and evolution of the business. However, there are some things to consider that might sway you either way. For instance, did you know that according to research, it costs 5x more to attract a new customer than it does to retain an existing one. Conversely, close to 90% of companies view the experience new customers receive, during the acquisition process, as being vital customer loyalty, so perhaps the extra cost is worthwhile.
At the end of the day, the choice is yours which you focus on more, but our advice would be to try to ensure you have some kind of balance and that you spend equal time and resources focused on both. If you can team up with your leading Kent digital agency to get the perfect retention-acquisition balance, then you are going to be able to reap the benefits of this moving forward.