Customer retention is less of a priority for 44% of companies compared to customer acquisition. But when it comes to maximizing CLV, which we talked about in our last infographic, keeping your customers happy and focusing on retention is vital to your business.
Improving customer retention by just 5% with AI, you can increase profits anywhere from 15-95%. And that’s a big deal. Vidora is already using AI to help some of the largest global OTT services minimize churn.
Here’s what a retention-focused strategy can do for your business:
Satisfying existing customers is the best way for you to bring in new customers too. Not only are referrals the best way to organically grow your business quickly, they’ll also reduce marketing costs. Even more importantly, satisfying your existing customers will directly impact your bottom line. Loyal customers spend more per purchase and are more likely to purchase new products.
Increasing customer retention by just 5% can increase profits anywhere from 25% to 95%. So why do more than twice as many businesses focus on acquisition before retention? There’s no doubt acquisition is important, but when it comes down to it, it’s vital not to neglect the customers you already have – they’re more valuable to you than you think.
Remember, “There is extraordinary chemistry (and profit) that exists in long-term relationships” – Conrad Levinson.