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.
Infographic by- Invesp conversion rate optimization company
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Channels That Are Used The Most For Customer Acquisition
Channel %age Websites 89% E-mails 81% Social media sites 72% Direct mail 66% SEO/PPC 65% Web banners 60% Mobile devices 34% Aggregator websites 32% Price comparison websites 18%
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 Channel Acquisition Retention Both Equally Paid search 86% 2% 13% Online display advertising 85% 4% 11% SEO (natural search) 66% 6% 28% Web retargeting 61% 22% 18% Mobile web 52% 18% 30% Mobile and web push notification 34% 39% 27% Social media marketing 31% 28% 41% Mobile apps 30% 44% 26% Website 29% 16% 55% Mobile messaging 23% 58% 19% 21% 52% 27%
Most Effective Digital Marketing Tactics For Customer Retention
Channel %age Email marketing 56% Social media marketing 37% Content marketing 32% Referral marketing 26% Search engine optimization 13% Display advertising 12% Mobile advertising 8% Digital video advertising 7% Affiliate marketing 6% Paid search 4%
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 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.
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The Art and Science of Converting Prospects to Customers
By Khalid Saleh and Ayat Shukairy
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