Acquiring customers is addictive. Launching a Facebook ad, sending a targeted email promotion, hosting a webinar, and then witnessing your customer count go up feels really good. There’s that quick dopamine burst validating the effort put into your marketing campaigns.
But acquiring customers is actually one of the least effective levers for growth. In a 2015 study conducted by Price Intelligently, a 1% increase in your acquisition affects your bottom line by about 3.3%. Improving your retention by 1% affects your bottom line by around 7%.
In short, focusing on retention is twice as impactful as focusing on the acquisition. Your web-based business doesn’t make money when a customer buys once or when a customer subscribes to your service for the first month. You make money months down the road because that customer is coming back time and time again. By investing in retaining customers, the money you spend to keep, rather than acquire, your customers turn out to be a key investment.
Here are 5 kickass case studies of popular brands that can teach us how to earn loyal customers.