Customer Retention vs Aquisition, Which is best for eCommerce.

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Ever wonder where you ought to focus business resources when it involves the value of acquiring new customers vs. retaining customers? it is a trick question, consistent with Ali Cudby, who is CEO of Your Iconic Brand, a marketing firm based in Indianapolis, Indiana that works with clients to enhance customer retention. It’s never either who is additionally author of the upcoming book Keep Your Customers and adjunct professor of entrepreneurship at Purdue University. Rather, she says, both got to be priorities. And yet, she frequently sees business owners putting their time, energy and dollars into the value of acquiring new customers vs. retaining customers.

They’re easier to mark the before and therefore the after,” she says. With customer retention efforts, however, results are often more gray than black and white. Once a customer comes on board, it’s harder to attribute the success or failure of the customer relationship to at least one single person, because now you’ve got of these different parts of the organization impacting that customer’s experience,” says Cudby. In her work, and in her upcoming book, Cudby is quick to tell businesses that customer retention is incredibly important.

For one thing, there are vastly different numbers related to the value of acquiring new customers vs. retaining customers There’s many different research out there. Most of the research shows that it costs between 6 to 7 times more to urge a replacement customer vs. keeping the purchasers you have already got , satisfied customers don’t just become repeat customers they can also refer new business, either by word of mouth or through social media. The power of referral is large , To help businesses understand the value of acquiring new customer vs. retaining customers, and to answer questions like what’s customer acquisition and retention.

Infographic created by First Data, a credit card processing company

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