One-time versus repeat customers
According to BIA Advisory Services, which provides some very clear metrics, repeat customers spend 67% more than new customers on average. Also, a survey conducted by BIA Advisory Services says that over half of the surveyed businesses’ revenue comes from repeat customers rather than new customers. This signifies the fact that retaining existing customers is as important as growing the customer base. However, businesses often sacrifice customer service to gain new customers.
BIA Advisory Services report
The need to retain customers
There are several benefits that indicate why retaining customers is so important to businesses:
- Less investment: The first obvious reason is that new customers cost more. If you recall a typical customer life cycle from Chapter 2, you...
