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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.

  • CW

    Chris Woodcock

    about 1 year ago #

    Thanks for sharing! Netflix example is really cool. They take personalisation of the experience very seriously.

  • about 1 year ago #

    From a business perspective, the cost spend on acquiring fresh customers is significantly higher as compared to the existing loyal customers. Therefore it is essential to retain loyal customers. Some useful approaches in this regard are:
    1. Listen to customer queries and complains & solve them immediately
    2. Be transparent regarding the service and products
    3. Keep in touch with customers and keep them updated with promotional discounts.
    4. Ask for customer feedback