Businesses find attracting new customers less expensive than maintaining current customers.

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  Did you know that it costs five times as much to attract a new customer, than to keep an existing one? The first rule of any business is to retain customers and build a loyal relationship with them, and thereby avoid customer acquisition costs. It’s a well-established fact that 44% of companies have a greater focus on customer acquisition vs. 18% that focus on retention. Also, it’s true that only 40% of companies and 30% of agencies have an equal focus on acquisition and retention. Check out our infographic, ‘Customer Acquisition Vs. Retention Costs – Statistics And Trends’ for more such interesting and relevant facts.

  Infographic by- Invesp conversion rate optimization company

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  Channels That Are Used The Most For Customer Acquisition

  Channel	%age
  Websites	89%
  E-mails	81%
  Social media sites	72%
  Direct mail	66%
  SEO/PPC	65%
  Web banners	60%
  Mobile devices	34%
  Aggregator websites	32%
  Price comparison websites	18%

  While more than 89% of companies see customer experience as a key factor in driving customer loyalty and retention, 76% of companies see CLV as an important concept for their organization

  Only 42% of companies are able to measure Customer Lifetime Value (CLV) accurately.

  The probability of selling to an existing customer is 60 – 70%, while the probability of selling to a new prospect is 5-20%.

  Existing customers are 50% more likely to try new products and spend 31% more, when compared to new customers.

  How Marketers Are Using Online Channels For Retention Or Acquisition

  Online Marketing Channel	Acquisition	Retention	Both Equally
  Paid search	86%	2%	13%
  Online display advertising	85%	4%	11%
  SEO (natural search)	66%	6%	28%
  Web retargeting	61%	22%	18%
  Mobile web	52%	18%	30%
  Mobile and web push notification	34%	39%	27%
  Social media marketing	31%	28%	41%
  Mobile apps	30%	44%	26%
  Website	29%	16%	55%
  Mobile messaging	23%	58%	19%
  Email	21%	52%	27%

  Most Effective Digital Marketing Tactics For Customer Retention

  Channel	%age
  Email marketing	56%
  Social media marketing	37%
  Content marketing	32%
  Referral marketing	26%
  Search engine optimization	13%
  Display advertising	12%
  Mobile advertising	8%
  Digital video advertising	7%
  Affiliate marketing	6%
  Paid search	4%

  Increasing customer retention rates by 5% increases profits by 25% to 95%

  More than two-thirds (70%) of respondents agreed that it’s cheaper to retain than acquire a customer.

Khalid Saleh

Khalid Saleh is CEO and co-founder of Invesp. He is the co-author of Amazon.com bestselling book: "Conversion Optimization: The Art and Science of Converting Visitors into Customers." Khalid is an in-demand speaker who has presented at such industry events as SMX, SES, PubCon, Emetrics, ACCM and DMA, among others.

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