Increasing customer retention by 5% will boost profits with 25–95%.

An entrepreneur is always thinking, about how to attract new customers.

It’s like dating, or any other human interaction.
You can present yourself attractively, and the first meeting takes place.

But if you don’t offer something consistent and relevant afterward, the relationship won’t continue.

Typically, a budget is allocated for marketing, the benefits to be promoted are identified, the promise is nicely packaged, and the potential customer is reached through the right channels.

A certain percentage of consumers become interested in what you offer, and then an even smaller percentage will make a purchase.

An even smaller percentage will return for a second time, and even fewer will come back a third time.

Then the whole process starts over, and you’ll most likely target the same potential customers with the same promise.
Conversion rates will drop even further.

The business owner becomes frustrated that the business isn’t growing.
They may think the marketing team isn’t doing their job properly.
Or that the budget isn’t enough.

But the data shows that the problem needs to be addressed at its foundation.
It’s unpleasant and unglamorous.

The least attractive work needs to be done first.
You have to make your bed first.

Acquiring a new customer costs five times more than retaining an existing one.
And the success rate of selling to an existing customer is 60–70%, while the success rate of selling to a new customer is only 5–20%.

Marketing is based on the value (relevant or not), that you promise to potential customers.

You need to first build the value you offer through your products / services and the entire customer experience.

Beyond benefiting from free marketing through word-of-mouth, the efficiency and conversion rate of marketing efforts targeting new customers will increase exponentially.

#branding #marketing #business #profits #development