• Customer Acquisition Vs.Retention Costs – Statistics And Trends

    Did you know that it costs five times as much to attract a new customer, than to keep an existing one? The first rule of any business is to retain customers and build a loyal relationship with them, and thereby avoid customer acquisition costs. It’s a well-established fact that 44% of companies have a greater focus on customer acquisition vs. 18% that focus on retention. Also, it’s true that only 40% of companies and 30% of agencies have an equal focus on acquisition and retention. Check out our infographic, ‘Customer Acquisition Vs. Retention Costs – Statistics And Trends’ for more such interesting and relevant facts.

    Customer Acquisition Vs.Retention Costs  Statistics and Trends

    Infographic by- Invesp conversion rate optimization company

    To Publish this Image on your Blog or Website . Copy this code

    Channels That Are Used The Most For Customer Acquisition

     

    Channel%age
    Websites89%
    E-mails81%
    Social media sites72%
    Direct mail66%
    SEO/PPC65%
    Web banners60%
    Mobile devices34%
    Aggregator websites32%
    Price comparison websites18%

     

    While more than 89% of companies see customer experience as a key factor in driving customer loyalty and retention, 76% of companies see CLV as an important concept for their organization

    Only 42% of companies are able to measure Customer Lifetime Value (CLV) accurately.

    The probability of selling to an existing customer is 60 – 70%, while the probability of selling to a new prospect is 5-20%.

    Existing customers are 50% more likely to try new products and spend 31% more, when compared to new customers.

    How Marketers Are Using Online Channels For Retention Or Acquisition

    Online Marketing ChannelAcquisitionRetentionBoth Equally
    Paid search86%2%13%
    Online display advertising85%4%11%
    SEO (natural search)66%6%28%
    Web retargeting61%22%18%
    Mobile web52%18%30%
    Mobile and web push notification34%39%27%
    Social media marketing31%28%41%
    Mobile apps30%44%26%
    Website29%16%55%
    Mobile messaging23%58%19%
    Email21%52%27%

     

    Most Effective Digital Marketing Tactics For Customer Retention

    Channel%age
    Email marketing56%
    Social media marketing37%
    Content marketing32%
    Referral marketing26%
    Search engine optimization13%
    Display advertising12%
    Mobile advertising8%
    Digital video advertising7%
    Affiliate marketing6%
    Paid search4%

     

    Increasing customer retention rates by 5% increases profits by 25% to 95%

    More than two-thirds (70%) of respondents agreed that it’s cheaper to retain than acquire a customer.

Khalid Saleh

Khalid Saleh is CEO and co-founder of Invesp. He is the co-author of Amazon.com bestselling book: "Conversion Optimization: The Art and Science of Converting Visitors into Customers." Khalid is an in-demand speaker who has presented at such industry events as SMX, SES, PubCon, Emetrics, ACCM and DMA, among others.

View All Posts By Khalid Saleh
Khalid Saleh

Join 25,000+ Marketing Professionals

If you enjoyed this post, please consider subscribing to the Invesp blog feed to have future articles delivered to your feed reader. or,receive weekly updates by email: