We focus on acquiring new customers. But how much is a current customer worth exactly?
We've all heard the saying that it costs more to acquire a new customer than to maintain an existing customer. But Flowtown actually did the math. The beautiful infographic showing that new customers cost six to seven times as much to acquire as maintaining existing customers:
The value of an existing customer
The most valuable part of this graphic is in the value we often don't consider: existing customers are less sensitive to price than new customers and are more likely to be a source of future referrals. If there was ever a strong case for investing in and financing customer service, this is it. Personally, I'm happily imagining this graphic making its way around call centers everywhere in order to get more staff, more training and more recognition for the great work agents do retaining customers every day.
The question: in addition to recruiting new customers and building brand awareness, what are you doing to reward and engage your current customers?