Customer retention, or customer retention, is much more important than customer acquisition.
Some say that acquiring a new customer costs 5 times more than keeping an existing one. Others say customer retention is 7x more beneficial. Not only that, "Acquiring a new customer costs 5 to 25 times more than keeping an existing customer".
It is clear that the data on this subject are not accurate, but the point remains. Customer retention is cheaper, more beneficial, and in many ways easier than acquiring new customers.
In this article, we will answer the following questions:
What is customer retention?
How is the customer retention rate calculated?
What are the most effective strategies for customer retention?
Which apps help with retention?
What are you waiting for then? Read on now!
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Customer retention: definition
what is customer retention?
Customer retention is the process that turns one-time shoppers into repeat customers.
The word "retention" derives from retain, or to retain, to maintain. Basically, it's another way of saying loyalty.
Hence, the goal of customer retention is to keep existing customers .
The objectives and methods of customer retention vary Photo Editing Services by sector: a company that sells high-end software will use customer retention as a marketing strategy differently from an ecommerce store .
However, what all sectors have in common is the idea of providing a level of quality and service that entices customers to continue shopping.
Let's dive into some of the customer retention strategies that are designed for ecommerce store owners like you.
These strategies for improving customer relationships will give your customers the incentive, opportunity, and desire to come back to your store for another purchase.
Why is customer retention important?
In addition to the fact that it is more expensive to acquire new customers than to keep existing ones, there are many other reasons why customer retention is important.
Returning customers are 50% more likely to buy from you than new customers and tend to spend around 33% more. So not only is customer retention cheaper, it is also more profitable in the long term.