Acquiring new customers is anywhere from five to 25 times more expensive than retaining new ones, depending on your industry.
Customer loyalty leads to profits. Increasing customer retention by just 5 percent boosts profits by 25 to 95 percent, according to the advisory firm Bain & Co.
Even the customers who spend the most at your company aren’t necessarily loyal. According to the advisory firm McKinsey & Company, 25 to 50 percent of a brand’s highest spending customers also shop with its competitors.
Customer engagement leads to customer retention. Research by Rosetta Consulting, for example, found that engaged customers are five times more likely to buy only from the same brand in the future.
Highly-engaged customers buy 90 percent more often and spend 60 percent more per transaction, according to the Rosetta Consulting study.