Customer retention why is it important

Overall, many customers associate higher prices with quality service, so offering added benefits motivates them to keep coming back. Start your program today with DCR Whether you are ready to start your program today, have questions, or are just looking for more information, we can help. Notice: JavaScript is required for this content. Program Management In-House Marketing. So why is customer retention important?

Lower Marketing Costs Your marketing budget goes further by prioritizing existing customers in the retention stage of the buyer journey. Gain Valuable Feedback Part of winning over customers is providing an exceptional customer experience, which requires listening.

Small changes in retention leads to huge results, while focusing primarily on acquisition sees significantly smaller dividends. Customer lifetime value needs to be as high as possible to ensure their lifetime is longer. As your business grows, your marketing strategy must evolve with it. Once you have consistent sales, emphasizing your customer retention strategy is the most powerful way to push your success forward. By harnessing the power of retention tactics like loyalty programs, re-engagement marketing, and value-add marketing, you will continue to improve your overall customer experience.

These tactics will complement the other reasons your customers already love your brand, such as your customer support, product quality, and branding. Investing in a customer retention strategy guarantees that your business will continue to grow over time.

With retention, you can stop investing in only ad space and start investing in what really pays off: your best customers. An effective customer retention strategy is designed to achieve the overall goal of retaining more of your current customers. Ultimately, customer retention is not tied to a single decision you make. As one piece of a bigger plan to acquire, engage, and retain more customers, customer retention is success worth waiting for and, if done properly, can be the piece of the puzzle that sustains your ecommerce business for years to come.

Commerce Tips. You can start to see the benefits of customer retention in as little as six months. Why customer retention? Using strategies, tactics and tools to kick-start your customer retention plan Now that we know what retention is, how do we go about achieving it? A large amount of time and energy is dedicated to this pursuit. After all, it makes sense to want more clients and customers than you already have, right?

On average, securing a new customer is 7x as expensive as keeping an existing customer. Obviously, customer acquisition is important, but unless you are focusing on all aspects of their customer journey, you are going to have a revolving door business model.

This leads to our next common question. As we mentioned earlier, it is far more expensive to find a new customer than retain an existing one. For one, your customers stand to benefit enormously from a retention based agenda.

This at the heart of the importance of customer retention: the customer. It seems obvious, but you would be surprised how little time and money is spent in this area. This means that right now your customers are likely not receiving the attention they deserve.

Your customers, and by extension, you. While customers in this day and age are becoming less loyal to brands, it is still vital to put effort into your customer retention marketing. The importance of customer retention is not found in keeping around an extra customer or two, but in treating your customers the way they should be treated.

Another great thing about the time we live in is that people are vocal in their support. What do you think when you hear that phrase? Most marketers do.

Your existing customers are your most valuable asset. Why customer retention matters especially right now Existing customers are significantly more likely than the average consumer to spend more, buy more, and recommend your brand to others. How to calculate your retention rate What retention means for you - and how you calculate it - depends on your industry and business model. Acquire more customers with Mention Me.