Customer Acquisition vs. Retention

Customer Acquisition vs. Retention

Why You Should Retain More Customers and How Your  Customer Service Team Can Help

Written by Caroline Saban, Assistant Business Development Specialist, Argo Contact Centers

There is something so satisfying about acquiring a new customer, so it’s no wonder why many companies put majority of their attention on customer acquisitions. You see all of the time, effort, and marketing dollars paying off with the new customers that are rolling in.

But, while you’re putting all of your focus on customer acquisition, you could be losing valuable customers who aren’t receiving enough attention.

In the end, what is the point of spending all of your time and money into customer acquisition when you are wasting the potential of their relationship with your brand once their newness wears off?

Equal attention should be placed on new customer acquisitions and customer retention.

For one, research shows that retention is cheaper than acquisition. Depending on the industry or market sector you are in, it can cost up to 30 times as much to acquire a new customer than retain an existing customer.

Not only is it less expensive to retain a current customer than acquire a new one, there is also more value – and more revenue to be had – with those customer who have a longer life cycle and, therefore, build a longer-lasting relationship with your brand. According to research by Bain & Company, an increase in customer retention rates by 5% increases profits by 25-95%. Also, the probability of selling to a current customer is higher than with a new customer.

So, do you have a plan in place to retain your customers? Here’s how you can use a customer service team to help in retaining your customers.

Make it easy for your customers to be in contact with your brand by phone, email, chat, and/or social media.

Today’s marketplace is riddled with competition and customers have several different choices to pick from. If you’re not maintaining a connection and communicating with your current customer base, it’s easy for your customers to feel like they no longer have a relationship with your brand and leave, choosing one of your competitors instead. Barriers to communication with your brand will create a loss of trust and diminish your customers’ loyalty to your brand. They want to be able to connect with you when they want and through the communication channel of their choice.

Provide the information and answers your customers are looking for.

Nothing is more frustrating to your customers than not being able to find the information they are looking for. Your customer service team acts as the liaison between your brand and your customers, providing them with the information they need quickly and efficiently. This creates trust in your brand and shows that you care about your customers. Without this, your customers will look to other brands who have readily available information for them and those that they can easily communicate with.

Use your customer service team as a tool to build brand loyalty.

It is vital to provide your customers with the attention they need and the customer experience they desire. Loyal customers tend to buy more than new customers as they’ve formed a relationship with your brand over time. Your customer service team can build upon the relationship each individual has with your brand during each and every interaction with customer service. By paying attention to their individual needs, showing they are valued, and showing that the brand cares about them, your customer service team builds rapport with your clients and makes the relationship with your brand feel personal.

Your long-term customer relations will have a positive effect on your brand. Word-of-mouth is the most cost-effective advertising you can have and only comes from your loyal, happy customers.

New customers are great but nothing beats a loyal customer who continues to purchase from you again and again.

Need help retaining your customers? Connect with Argo and see how we can help!

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