inc.com – It is 7x more expensive to acquire a customer than to keep one. A study by Bain and Co. shows that a 5% increase in customer retention can increase a company’s profitability by 75%.
And if that’s not enough, another recent study shows that 80% of your company’s future revenue will come from 20% of your current customers.
In short, retention is probably the absolutely most important part of your business.
And yet, bizarrely, it’s also one of the most overlooked aspects of building a successful company. Startups pour all of their efforts into growth and new customer acquisition, and they lose half of those customers out of their leaky bucket faster than they can add new ones.
Read more at inc.com