• Customer Acquisition Vs.Retention Costs – Statistics And Trends

    By Khalid Saleh

    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

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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%
    Email 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%

     

    FigPii Heatmaps

    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.

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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.

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Khalid Saleh

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    Conversion Optimization

    The Art and Science of Converting Prospects to Customers

    By Khalid Saleh and Ayat Shukairy

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