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.
