In a world where lead generation seems to rule the marketing funnel, it can be easy to focus on acquiring new customers. After all, you need to sell more to make more, right? So naturally, most businesses focus on expanding their customer base to achieve this increase in revenue.
However, the old adage remains true as well. It’s cheaper to retain a customer than it is to acquire a new customer. Which means we should be focusing on customer retention at all times.
Seems like a contradiction in focus, doesn’t it? Here’s the thing. A business should be focused on customer acquisition AND customer retention. You want to gain new customers while keeping existing customers. A natural churn rate is unavoidable. However, there needs to be a conscious effort to balance the scales. And companies should have a strategy for both.
Should You Focus On Customer Acquisition Or Customer Retention?
If you are a new business, the bulk of your marketing efforts will be focused on getting visibility in the marketplace for lead generation. Conversely, an established business should focus the bulk of marketing efforts on customer retention. But what are the best methods to achieve each of these goals?
Fortunately, this infographic from First Data can help! Use the tips and insights in this Customer Acquisition vs Retention infographic to strike the balance required to help grow your business.
This infographic was created by First Data, a provider of merchant services.