By Duane Fernandes | 29th January 2021

Why Is Customer Retention Greater Than Customer Acquisition?

We live in a day and age where customer acquisition is not only perplexing but is also costly.

Whether it is via your marketing or sales campaigns, or whether you have to wine and dine them, up to the phase of turning them into a client, the budgets aren't low.

While there's nothing wrong with working hard to grow your customer base, it's important to remember the value behind customer retention, brand loyalty, and creating ultimate customer experiences and satisfaction.

Okay, I'm sure you're interested enough, so let's get to it.

How To Increase Revenue From Existing Clients?

In a study by Harward, they found that increasing customer retention rates by 5% increases profits by 25% to 95%.

Another study showed that acquiring a new customer is five times as expensive as retaining an existing customer.

Okay, let us understand how & why to do it now...

What Is Customer Lifetime Value?

Customer lifetime value, or CLV, is a business metric that predicts the total worth of a customer to a business over the course of their entire relationship.

For example, a specific customer that buys new products yearly will have a much higher lifetime value than someone who buys every two years.

How To Increase Customer Lifetime Value?

Creating great experiences frankly isn't as mysterious and difficult as it was back in the day without technology. Now with the proliferation of touchpoints with the growth of social media, websites, and various landing pages, creating impactful customer experiences has become more efficient and effective.

However, not all businesses are making the most of these benefits

Here are few ways how we have improved our partner experiences to create greater long-lasting relationships and delivered ultimate experiences and satisfaction:

1. Being Good Listeners

As you may know, we have our ongoing campaign called 'Help iSN, Help You'. It is predicated on the exact value of being humble listeners.

We are sincere believers in keenly listening to our clients to mine insights & observations, that help us provide proactive solutions and experiences, in turn helping us generate the highest quality performance solutions.

2. Striving To Create Unforgettable Memories

Approach planning client interactions as if you are planning a surprise for your partner o family.

First, of course, understand what they like and want.

Our clients undoubtfully would be glad to see a great presentation of results, but don't limit yourself to just that.

For example, we sent our best wishes and support by sending flowers and a card to one of our clients who had covid. He showed it to us during our online meeting and was so grateful.

3. Providing Exclusive Insights & Content

It is really simple, people will only love your company and want to stick around for long when they feel they're getting more than they pay for.

Make them feel like they're stealing from you. They should believe their ROI is much much greater than their estimations or expectations.

You can always do that by sharing your insights and content that is not directly related to them. However, majorly impactful and valuable.

4. Being Readily Available

Now don't worry, I won't ever ask anyone to not sleep or wake up in the middle of the night attending client meetings. However, if it's occasionally needed, I would say do it, your client won't ever leave you.

However, with the advancements in technology, we can automate a lot of those processes. There are software tools that automate chatting and support every second. So if your business is on a level where it can manage this, it really helps a lot.

5. Prioritize Quality

There's nothing any client can adore more than impeccable quality. Take every step of the way with a desire to strive for excellence and supreme quality.

6. Take Feedback & Communicate How It Impacted Your Business

We have feedback calls with our clients every month. Where we take all their reviews and insights from their experiences with us and try and incorporate them into our workflow to improve.

When we communicate the results to our clients you can see the pride and joy in their eyes, which is really wholesome, and once again creates stronger bonds.

7. Sharing Their Memories On Social Media & Mentioning Them

Now, if one of your clients decides to return their appreciation for your work or if there are moments that are worth capturing or sharing.

Do write about it, or be creative in portraying it on social media, maybe in the form of an image video or whatever, and mention them in it.

These were a few of our insights on how to create better customer retention and inadvertently getting a higher customer lifetime value.

We would love to connect with you if you are looking in improving your companies performance. Fill this easy 3-Step Evaluation form below, and let's connect!

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