Importance of Customer Acquisition and Retention
It’s impossible to exist in the business world without challenges. Like often there is a challenge of getting new customers, then you might lose existing customers, also you might have to solve your problems with limited resources. This s just a very small list.
However, there are several important factors that are crucial for companies, like customer acquisition, which is related to getting new customers for your company, and customer retention, which is about keeping existing customers in your business. Business without customer acquisition is stagnant and without customer retention, it’s stuck on a treadmill, where it’s running nonstop without going anywhere.
Customer Acquisition as Your Priority
When customer acquisition is your priority you actively work on sales and every aspect related to it. You have a chance to get numerous customers who will buy from you or use your services. It’s beneficial for you, but it’s interesting what will happen in the future. Will they keep buying from you or is it just a one-time thing?
Customer Retention as Your Priority
Customer retention is vital for long-term business success. In today’s world there is a lot of competition, so just closing the deal isn’t always working, and even when it works it’s not enough. You can think that selling your software to one client is okay, but what really happens when there are numerous software out there and all of them are better than others?
Companies are giving customers chance to try out free trials, to show them what they can offer and also to get their loyalty. They need somebody who will stay with them and will be interested in other products that they have or will develop because of the huge competition on market. That’s why customer retention is important, you need to keep your customers in your company.
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There are numerous customer acquisition strategies, you can even read one of our articles “What are the Best Customer Acquisition Strategies” to have a better understanding of this topic. Besides attracting customers it’s important to keep them as well.
Keeping customers that you acquired gives you more financial benefits and gives your company a better name. Long-term customers are great for referrals as well, they will recommend you to other people with great pleasure.
Customer Acquisition and Retention Drive Growth
Customer acquisition and retention are like two wings of a bird, and if one of them has problems, flight becomes impossible. Both of those elements are very different from each other, but you need both of them to be successful.
The acquisition grows your customer base, and retention grows your customer lifetime value. The acquisition could cost more for the company, but with a good retention strategy, you’ll be able to generate significant returns.
Determine What Are Your Goals
Customer acquisition and retention as well are very important for companies, so ideally it would be great to focus on both of them. You need to determine which one is more beneficial for you or how could you use both of them. For example, many SaaS companies focus on retention. But you need to keep in mind that customer acquisition and customer retention are like two sides of the same coin.
Companies Using Different Strategies
Based on how big and popular they are, companies use acquisition and retention strategies differently. It’s important to use both strategies for a successful future, but the process can be very creative and original.
For example, Coca-Cola has a great history of customer engagement. Their customer retention strategies give people fun memories that aren’t easily forgettable. The “Share a Coke” campaign was a very successful retention strategy. They just changed their brand’s names with actual names and the reactions of people were phenomenal.
Amazon is another great company for whom successful retention strategies are related to giving their customers chance to have personalized experiences, and also they have a good return policy as well. So you can use many options, like personalized services, customer feedback, social media platforms, and many others to bring success to your company.
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