84% of businesses spend either more or the same amount on customer acquisition as they do on retention. 84% of businesses are doing it wrong.
Let’s look at the facts for a minute:
– By working more customer focused you can increase your revenue by 10%.
– It costs five times as much to attract a new customer as it does to keep an existing one.
– 80% of companies’ future revenue comes from 20% of their existing customers.
In short: if you’re focusing on lead acquisition rather than customer retention, you’re losing money and frustrating the most important people in your business.
The data is conclusive.
It’s easier, cheaper, and more profitable to increase revenues from your existing customers than it is to sell to new people. In fact 4 in 5 customers are also willing to pay more for a better customer experience.
So obviously that’s where everyone is spending their marketing budgets, right? Not even close.
Despite all the evidence, despite every indication that it’s harder and less profitable, marketers are still completely obsessed with bringing in new prospects.
And who loses out?
Your existing customers. The people who actually spend with you. They end up playing second fiddle to these shiny new leads, and it means paying customers get clunky communications that, at best, frustrate them and, at worst, prevent them from spending more with you.
It makes no sense.
Your existing customers:
– Provide all of businesses’ current revenue
– They provide the lion’s share of all future revenue
– And they’re ready to leave at the slightest customer experience misstep
Frankly, customers aren’t getting the treatment they deserve.
So start tackling the single biggest mistake in customer experience and improve your customer experience KPIs.