Why Customer Retention is Key to Long-Term Business Success
Customer retention is the process of keeping current customers happy and loyal to a business. It is crucial for long-term business success because it not only helps to maintain a steady stream of revenue, but also reduces the costs associated with acquiring new customers. Niva Overseas One of the main reasons why customer retention is so important is that it is much more cost-effective to retain existing customers than to acquire new ones. The cost of acquiring a new customer can be five to 25 times more expensive than retaining an existing one. This is because businesses have already invested time and resources into building a relationship with current customers, and it is easier to sell to them again than to start from scratch with new customers. Another important benefit of customer retention is that it helps to increase customer lifetime value. Customer lifetime value is the total amount of money a customer will spend with a business over the course of their lif...