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Customer Retention

Posted in: Business Advice
It is as equally, if not more important to retain customers as it is to generate new ones.


Most businesses spend 5 to 10 times more on new client acquisition than on existing client retention.

You work hard and spend big money to gain customers, it only makes sense to put effort into retaining customers to benefit from long-term repeat business.

Three proven ways to retain customers

  1. Build a customer retention plan that delivers targeted, relevant messages and communications to keep your customers coming back, improve response rates, and increase order values.
  2. Develop a customer loyalty program to maximise profit and revenue.
  3. Use lifetime value and regression modelling to predict future revenue streams and to determine the value of new customers. This best practices approach will ensure your marketing efforts are focused on your best customer segments, and money you spend to acquire new customers will  pay dividends well into the future.

Quick tips

  • Estimate the value of your customers by segment.
  • Focus on the retention of your best customer segments.
  • Make your communications count. Do your customers see you as the expert? Increase customer loyalty and trust through regular communications that give valuable information, free advice etc.
  • Determine your allowable cost-per-new-customer ratio to focus your marketing efforts and ensure you profit from the spend.
  • Improve your brand image to lift your profile in the eyes of your customers.

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