More referrals and word of mouth marketing
Posted: Sat Feb 22, 2025 6:46 am
A mere 5% increase in customer retention can increase your revenue by 25-95%. In other words, even the smallest improvement in customer retention can translate into a substantial positive impact on your ROI .
Loyal customers often become brand ambassadors and are more likely to refer their contacts to your business.
When it comes to acquisition strategies, good old word-of-mouth marketing is one of the best strategies out there.
Plus, it’s completely free and still provides a lot of social proof . So customer acquisition can happen naturally when you prioritize retention.
Learn more: Social proof in digital marketing: discover how to explore it now
More sales resulting from customer loyalty
You know that your existing customers already love your product or service, which is why it’s much easier to upsell to them than to newly acquired customers.
According to industry research , it's easier to sell more to existing latvia mobile database customers because they've learned the value of your product or service.
Better customer retention will therefore convert more sales with a focus on upselling – offering your current customers upgrades or additional features to make more profitable sales.
Increased Customer Lifetime Value (CLV)
Customer lifetime value is the expected profit you get from each customer in your business.
The better your customer retention, the higher your customer CLV. The goal is to spend as little as possible on customer acquisition and make more money through customer lifetime values.
Get valuable feedback
Loyal customers always like to feel like they are a contributor to the brand. If given the opportunity, they will provide suggestions and opinions about your products/services or customer service.
Related: How to Build Brand Authority in 5 Steps
Having this flow of ideas can help you see your business from a different perspective and determine ways to improve it.
Additionally, it will have a positive effect on your retention rates because customers are more loyal to companies that listen to and implement their customer feedback.
Loyal customers often become brand ambassadors and are more likely to refer their contacts to your business.
When it comes to acquisition strategies, good old word-of-mouth marketing is one of the best strategies out there.
Plus, it’s completely free and still provides a lot of social proof . So customer acquisition can happen naturally when you prioritize retention.
Learn more: Social proof in digital marketing: discover how to explore it now
More sales resulting from customer loyalty
You know that your existing customers already love your product or service, which is why it’s much easier to upsell to them than to newly acquired customers.
According to industry research , it's easier to sell more to existing latvia mobile database customers because they've learned the value of your product or service.
Better customer retention will therefore convert more sales with a focus on upselling – offering your current customers upgrades or additional features to make more profitable sales.
Increased Customer Lifetime Value (CLV)
Customer lifetime value is the expected profit you get from each customer in your business.
The better your customer retention, the higher your customer CLV. The goal is to spend as little as possible on customer acquisition and make more money through customer lifetime values.
Get valuable feedback
Loyal customers always like to feel like they are a contributor to the brand. If given the opportunity, they will provide suggestions and opinions about your products/services or customer service.
Related: How to Build Brand Authority in 5 Steps
Having this flow of ideas can help you see your business from a different perspective and determine ways to improve it.
Additionally, it will have a positive effect on your retention rates because customers are more loyal to companies that listen to and implement their customer feedback.