Customer Retention vs Acquisition
While doing research for a proposal that I was writing for a company to do their sales training, I came upon this awesome infographic that I just knew I had to share with you. I found the information to be compelling and in some cases quite eye opening!
For starters: The probability of selling to an existing customer is 60-70% while the probability of selling to a new prospect is 5-20%. So what does this mean to you? It means that maintaining regular contact with your customers to build your relationship with them will translate into a greater likelihood that when you offer them another product or service, they will buy it.
Where are you focusing? On new customers or your current customers?
And to add to that, an existing customer is 50% more likely to try new products and will spend 31% more compared to a new customer. When you maintain your relationships with existing customers and debut a new product, you have a 50/50 shot at them buying it. Not only that, but they are going to spend up to 31% more than a new customer will on that new product line.
Probably the biggest eye opener for me was that increasing your customer retention rate by 5% increases profits by 25-95%! To put this into perspective, this means that doing that little extra to reach out to your customers, stay in touch, keep top of mind, and let them know you care about them for more than your paycheck can help retain and increase the number of existing customers such that your profits increase by 25-95%.
Now that you know this, what will you do to move forward and retain customers?
Infographic by- Invesp