Customer Acquisition vs Customer Retention

Remember that customer that you saw checking out your storefront, both on and off-line? Remember how you ‘threw’ everything at them to woo then into your fold, from enticing offers and specials and ‘First time buyers’ CTAs on your website? That customer you spent an arm and a leg on in marketing collateral to ensure they noticed you in the hope that they bought from your shop and supported your brand? That customer who had the call centre tied up for ages solving their questions and answering every query they posited around that gizmo they saw in your store?  

That customer who was part of a customer survey enlisted to comment on the gizmo before it was launched and who was really vocal about the process, and you persuaded them to post comments?

You know, the customer who asked all their friends’ opinions on Facebook and engaged in heated discussions around the pros and cons of the gizmo, even visiting the competition’s website for comparisons on a similar (but, heaven forbid, inferior!) product??

The customer who engages with your brand, who influences their friends and family to use your product and services, repeatedly, is likely to be ‘a keeper’.

You know that customer that spent forever considering their purchase: should they, shouldn’t they spend the money? That customer.

Remember that customer who loved the gizmo so much that they eventually went out and bought one. That customer, remember that customer?

Well, that was part of the customer acquisition process.

This part of the Customer Journey involves you putting processes in place to bring new consumers on board, and it is key in growing your business.

It costs much more in time and money to acquire a customer than to retain one…

It does little good to any company if that same customer never comes back or returned that gizmo and then posted comments about how useless it was.

As you acquire new customers, it is critical that you develop ways to make certain that they stay with you and become a loyal patron to your business. All you have to do is think about the time and effort it took to get them onboard in the first place!

What you are looking for is customer retention.

This is the customer who, after purchasing the gizmo, then posted really complimentary comments on social media about their purchase and told all their mates about it, so you had to go and order in another load of gizmos from your other branch to satisfy the demand.

Customer retention is dependent on ensuring you are looking after your customers and offering them a memorable experience — every time.

This is the customer who engages with your brand, who looks forward to specials and product news, who influences their friends and family to use your product and services, repeatedly.

Customer retention is all about keeping your current consumers, as holding on to customers will increase your sales and profit. 

This is all dependent on where in its cycle your business is, as this will determine whether you should focus more on customer acquisition or retention, as it will be easier for an established company to leverage its customer base than a start-up with a small customer base. 

Either way, stock up on those gizmos, you need something to lure in the first-time consumer and then work to retain them…

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