Customer Retention Gets Tough. Here’s How to Deal With It


If you want your business to succeed, it’s not enough to just bring in new customers over and over again. Yes, new customers are always needed, but if you’re not retaining the customers that you already have,
you’ll always be working from a marked disadvantage.

That has always been true, but in 2020 it is more true than ever before.

A whopping 65% of a company’s business comes from existing customers. So keeping your customers happy and coming back for more is absolutely vital to your continued success.

But customer retention isn’t easy. With competitors constantly trying to outdo you and steal your customers away, you’ve got to constantly be on top of your retention efforts, or you risk a mass exodus.

In this article, we’re going to arm you with a number of tips and tricks that will help you retain your customers for years to come, creating a steady stream of reliable revenue that will keep your company in the black.

Why is Customer Retention Important?

You know that retention is important, but how important is it really?

The world economy is in shambles as the world reels from the impact of COVID-19, which means that people aren’t going out and spending money. Consumers are not taking chances when they don’t know where their next paycheck is coming from.

As such, the already arduous task of generating new business has become even harder. But if you’ve managed to retain the customers that you already have, you’ll be working at less of a disadvantage. Customer retention allows you to future proof your business.

Another hurdle is that customer acquisition in today’s climate is incredibly expensive.

Customer acquisition costs for both the B2B and B2C sectors have gone up by almost 50% in the last five years.

So if your customer base is a revolving door, and you’re constantly having to replace old customers who have abandoned you, it’s going to be harder to generate a profit. At a time in which businesses are struggling with reduced revenue, those acquisition costs are going to be even more of a financial burden, pushing you ever deeper into the red.

When dealing with a brand new prospect, you have between a 5% and 20% chance of closing a sale. But, when you’re selling to