We talk a lot about acquiring new customers, but many plumbers and home service pros never talk about how to keep them. A savvy marketer knows that cost of acquisition is only part of the equation. Retention (or “lifecycle marketing”) is an investment in your customers that is well worth it because it can reduce the cost of customer acquisition by up to 80%.
When you’re looking to increase your customer retention rate, it’s important to note these statistics.
- 67 per cent of returning customers spend more in their third year of buying from a business than in their first six months (Source: McKinsey Global Institute ).
- By increasing your customer retention rate by 5 per cent, companies can increase profits by 25 per cent to 95 per cent (Source: MarketingSherpa ).
- 82% of companies agree that customer retention costs less than customer acquisition.
- Great marketing strategies should focus on retaining customers instead of acquiring new ones.
- Customer retention will increase profit and cost less than customer acquisition.
- Good customer satisfaction, unexpected offerings, realistic expectations, communication and feedback will increase customer retention.
“Leadership in high-growth organisations were forced to pay closer attention to customer retention if acquisition opportunities were diminished. I’d hesitate to say that was good news”