What is the importance of customer retention?
Customer retention is all about keeping existing customers that the company has acquired.
The top customers will not just purchase one product or utilize the service once; instead, they will return to buy more and more. It is a fact that customer retention shoots up customers' lifetime value and heightens the sales turnover. Customer acquisition is more expensive than customer retention.
The most recent statistical analysis shows that the probability of selling to a new prospect is 5-20% while to existing customers 60-70%. It is further analyzed that existing customers spend 30% more than new leads, and when a new product is launched, the loyal customers are 50% more likely to give it a try.
Strategies for better customer retention:
Customer retention strategies help a business in delivering excellent customer service experiences. Customer retention indeed serves in getting feedback from existing customers that can have a snowball effect in influencing new customers. In general, the below customer retention strategies aim to create loyal customers who will stay with the business for a lifetime.