Most marketing professionals would agree that customer acquisition is a driving force of any business. It proves that marketing tactics and campaigns were successful and that the business does, in fact, provide a desired product or service.
Yet, what is more important; customer acquisition or customer retention? Growth is surely tethered to acquisition, but isn’t it also directly tied to retention? Below you will find some reasons NOT to focus solely on acquisition and spend some of your efforts on keeping the customers you already have.
It’s less expensive
Consider the time and money that goes into acquiring new customers. You could spend thousands of dollars on a marketing campaign that only brings in a single new customer, who only spends $150. You might do this multiple times throughout the year, running campaign after campaign and funneling hundreds of thousands of dollars into your marketing department. You might see success, or you might not. Now think about what it takes to retain your current customer base. Presumably, it comes down to customer service and the efforts of an experienced and professional customer service call center. Maybe your customers need help with their product, and you partner with an outstanding technical support call center to get your customers the assistance they need. It is 25 times more expensive to acquire new customers than it is to retain the old ones and what you spend on providing excellent customer service will be far less than your multi-tiered marketing campaign.
It will almost always be easier to make a sale with a returning customer than it would be with a new customer. You’ve already broken down all of the hesitations and purchasing barriers that a returning customer has, allowing you to make a quick sale. Current customers know the type of product and/or service you provide and don’t need to be convinced. New customers still have those walls and hesitations that takes time and resources for your sales team to get through.
Customer retention fuels acquisition
What many businesses lack the foresight to see is the fact that customer loyalty is contagious and will spread to new customers. When your retention is high and your customers are happy, that will bring in new business in itself. A referral from a repeat customer is perhaps the easiest way to bring in new business, and all it takes is good customer service.
Partnering with a technical support call center, marketing call center, inbound sales call center, outbound sales call center, or any customer call center for that matter will help you retain your customer base and propel your business to success.
If your business is looking to partner with a technical support call center, give us a call today. Your customers are our customers, and satisfaction is our business.