True business growth doesn’t happen with a new customer’s first purchase. It occurs when she comes back for the next buy and the one after that, and eventually — the ultimate growth catalyst — she tells her friend to shop there, too.
Yet 44 percent of companies surveyed by Invesp place a stronger focus on acquisition, with just 18 percent paying more attention to retention. That means their time, focus, strategies, and finances aren’t being leveraged to the fullest extent.
Factor in the expense of acquiring customers — which costs six to seven times more than keeping one who already exists — and it becomes clear that, while customer acquisition cost is an important metric, it’s not the most important one in forecasting long-term success. Read the full article here.
By Mike Haley, Business2community.com