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
|Social media sites||72%|
|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|
|Online display advertising||85%||4%||11%|
|SEO (natural search)||66%||6%||28%|
|Mobile and web push notification||34%||39%||27%|
|Social media marketing||31%||28%||41%|
Most Effective Digital Marketing Tactics For Customer Retention
|Social media marketing||37%|
|Search engine optimization||13%|
|Digital video advertising||7%|
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.