Acquisition vs. retention strategy has been a long-standing debate in the business world. Iit is 5-25 times more expensive to acquire new clients than to keep the old ones and by increasing the retention rate by 5% you can increase profitability by 25-95%. However the reality is that no company can develop without a steady sustainable flow of new business, especially in the growing markets.
So the dilemma ‘to acquire or to keep’ is not realistic, you need to do both.
How can Customer Experience discipline help then?
Create mutual value
Today’s customer has access to the abundance of information at their fingertips and is not inclined to believe a sales pitch only. You need to demonstrate your expertise and knowledge of the market, enhance their understanding and make your brand relevant to their goals. Being well-versed in market research, consumer trends and utilising your internal insights, including employee feedback will help you create compelling content that keeps the prospects interested.
Make them feel good
McKinsey says 70% of buying experience are based on how the customer feels they are being treated. Going back to the sales pitch, pressure is no good. Your customer wants to feel comfortable with their choice and supported through making the right decision.
Even if you didn’t get the sale this time, maybe it’s not the right time for your customer. Think long-term and keep the dialog going by continuing to demonstrate your expertise and relevance.
Acquisition is part of the end-to-end customer journey and needs to be managed accordingly
Acquisition is the first step towards a successful relationship with your customers, but why do we then see up to 30% churn in the first 30 days in many industries? Simply because more often than not marketing, sales and service seem to operate in their own worlds and silo-specific targets, without a joined up customer strategy. Yet strong performance post-purchase yields increased references, case studies, referrals and enhanced renewability. It is critical to address any pain points post-purchase immediately and demonstrate your ability to create long-term value for your customers.