In business-to-business marketing, it costs approximately 10 times as much to acquire a single new customer as to keep an existing customer.
Many businesses lose about 25% of their customers to their competitors annually.
If you could cut 5% of that customer loss, you could add as much as 100% to your bottom line.
Let’s say you allocate 6 times as much to advertising as you do for customer retention...
Suggested Formula
Acquisition Approach: you allocate $120 for advertising and acquire 6 new customers at $20 each and you spend $20 and retain 5 customers at $4 each.
Retention Approach: you allocated $60 of your advertising budget to acquire 3 customers and $80 towards customer retention for 20 customers.
You could add as much as 100% to you bottom line.
Conclusion: higher revenue for the same expense, which translates to a higher revenue for the same cost.
Word of Mouth Marketing Ideas gets you re$ult$
Written on Sunday, 15 January 2012 01:02 by Administrator