Why do businesses spend so much money to acquire new customers when customer retention is an effective strategy? It goes without saying that customers are what make up any business. Without them, there would be no business and nearly all enterprises will close. But if customers are the most essential for a business to thrive, why would an organization spend more dollars to find new clients than they spend on retaining the ones they already have.
You can use acquisition marketing to venture out for new customers to your business. But this should not be done at the expense of the existing customers. Finding the right balance between the two is often a challenge to most businesses. And it is this balance that determines a growing business, a stunted one and one that is closing its doors.
Technology has however made it possible to automate some of the customer retention functions so that it is less expensive. Some of the strategies used in social media marketing, content marketing and email marketing can result in huge benefits such as being in touch with the existing customer base, sending reminders to customers about upcoming events and keeping a professional relationship all through your interactions. And when you need to get more customers, you can use direct response marketing because it will elicit an immediate response from the interested consumers. While most of the other customer acquisition techniques are expensive, this less costly alternative is by far more effective in practice.