Retention vs Acquisition: Which Is Better For Your Business?

//Retention vs Acquisition: Which Is Better For Your Business?

Retention vs Acquisition: Which Is Better For Your Business?

Ahh, the great rivalries of our time: Kirk vs Picard, iPhone vs Android, Retention vs Acquisition. That last one may be a little less familiar to you, but it’s significantly more important than whether you favor Kirk’s bare-chested heroism or Picard’s stoic leadership — your business may depend on it.

Of course, successful companies will need to do both because they are cyclical: without retention, business costs would skyrocket due to the constant need to replace customers who are leaving. Without acquisition, no new customers would come to the business, so there would be none to retain in the first place. Balancing the two is the key to success for a growing business, and the understanding the pros and cons of both is vital to developing a strategy to achieve this.

Cost

Studies have proven that increasing customer retention rates can have a positive impact on profits, boosting it by 25% to 95%. It can be easier to target customers that have already expressed interest or curiosity regarding your products or services, such as through performance marketing groups that utilize outbound sales calls, since you already know where they stand — there’s no real guesswork involved, so you can use your money much more efficiently. Additionally, retaining customers through inbound sales calls (specifically through the use of customer call centers) and focusing on customer experience can encourage more purchases.

Despite this fact, most companies choose to focus on acquisition. By pouring money into channels like SEO, social media ads, direct mail, or print advertising, they’re blindly (and expensively) attempting to bring in new customers without knowing which channel made a difference. In the end, the thousands of dollars spent on outreach may only produce a small number of new buyers.

Data

Since the customer base is a company’s greatest asset, it contains a vast amount of important data. How did they find your business, how much do they spend, what do they buy and how frequently? Although this information can play a huge role in retention by focusing on the big successes, many companies fail to properly utilize it toward predictive analytics; having the information is good, but it doesn’t make a huge difference if you don’t know how to use it.

Establishing a call center USA base can help both retention and acquisition. Call center USA bases provide a friendly voice that consumers are familiar with, encouraging positive customer/company relationships.

By |2018-11-12T15:02:08+00:00October 31st, 2018|Call Center|0 Comments

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