How much does it cost to acquire a new customer? How much does it cost to retain an existing customer? We ran the numbers and Holy *%$#, new customers are expensive!
From a marketing perspective, in our case, the cost to acquire a new customer was ten times that of retaining an existing customer.
Marketing costs only tell part of the story. New customers are labor intensive. They require more utilities from the sales, operations and administrative departments. And, more often than not, new customers are won over by price. Yikes! Add it all up and you are probably not making much margin from your new customers
But you can’t have repeat clients without new. So you do what it takes.
Knowing the numbers is helpful because it crystallizes the value of repeat clients. Nothing is more important in your business than customer retention and nothing is more costly than loosing a previous customer.
Maximum efforts must be taken to keep your existing clients happy and feeling great about the services your offer. This means specific marketing campaigns, special events, extra patience and extra care.
Most of all it means saying thank you. To all our customers, thank you very much for your business. We greatly appreciate you, we value you and we look forward to serving you in the future.
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