It’s hard to believe that so many companies still devote most of their resources to new business. Don’t get us wrong, a new customer is always a worthy pursuit.
But this laser focus on the present often comes at the expense of the future.
US companies spend $50 billion yearly on loyalty programs.
Meanwhile, businesses sink hundreds of billions of dollars into advertising annually. In 2019 alone, $240 billion dollars were spent in the US. And while 2020 was (understandably) atypical, economic recovery in 2021 is expected to bring growth back to customer spend AND business advertising spend.
We get it. New business makes the CEO and shareholders happy. It earns parties in the breakroom and high fives in the boardroom.
Customer retention may not have the same sexy reputation, but it's definitely more profitable. Even better, profits are just one of the positive aspects of retention and loyalty.
Let's go over the top ten benefits of retention, shall we?