Insights

What is Customer Retention and Why Your Business Should Care

Marketing

Discover what customer retention is and its significance for businesses. Learn effective strategies to boost retention rates through this article!

Frequently Asked Questions (FAQs) about Customer Retention

Is retaining customers much cheaper than acquiring one?

In most cases, retaining an existing customer is significantly cheaper than acquiring a new one. Reports suggest it can cost 5 to 7 times more to attract and convert a new customer compared to nurturing an existing one.

What are some common mistakes businesses make in customer retention?

Businesses often stumble over several hurdles in their pursuit of customer retention. A frequent misstep is failing to understand their customers' needs and expectations. Assumptions run rampant, leading to mismatched products, services, and interactions that leave customers feeling unheard and undervalued.

Another pitfall is prioritising acquisition over retention. Businesses pour resources into attracting new customers while neglecting existing ones, fostering a transactional relationship instead of a loyal one. Ignoring customer feedback adds to the problem. Valuable insights are cast aside, leaving room for issues to fester and drive customers away.

ADA Asia

ADA provides services that enable enterprises and brands to drive topline growth through digital marketing and sales transformation across Asia

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