Customer Retention Should Outweigh Customer Acquisition

Too many CMOs looking to increase their company’s bottom lines are quick to look “out there” for a solution. They focus their efforts on acquiring new customers and pouring a large chunk of their marketing budgets into advertising or public relations.

Boosting retention rates of current customers by just 5 percent can raise profits by 25 percent to 95 percent. Additionally, more data by Bain & Company indicate that a 10 percent rise in customer retention yields a 30 percent increase in the value of the company.

These principles can also be applied to small businesses!

Of course, loyalty is only one aspect of retention.  You need to have great products and customer service as your core.  Once that core is established, the power of a loyalty program and messaging to those customers can have a big impact on your business.

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NorthShore Loyalty is focused on building customer traffic through a mobile marketing solution to reward, re-engage & relate with customers via text marketing. Contact us at ron@northshoreloyalty.com for more information.