Retained customers have higher RO
Posted: Mon Dec 23, 2024 4:40 am
Firstly, according to AdAge, acquisition has become more expensive than it used to be. Secondly, in general, keeping existing customers is cheaper than acquiring new ones. This is because your existing customers are already familiar with your business. Consequently, there is no need to convince them of your worth and educate them, just to remind them of your existence and attract them to products.
So as a result….
Since retained customers are more likely to p cell phone lists for sale urchase again and have higher order value, as well as bring in more customers – they generate higher revenue than new customers.
Since you need less resources to convince them to make another purchase, they are less costly than new customers.
Because they bring more revenue and cost less, retained customers generate higher ROI.
Retained customers have higher long term profitability:
Customer lifetime value (CLV) is the predicted profit from a customer during the entire lifetime of their relationship with the company. It is the product of purchase frequency and repeat purchase rate.
Since those two metrics are higher for retained customers than new customers, retain
So as a result….
Since retained customers are more likely to p cell phone lists for sale urchase again and have higher order value, as well as bring in more customers – they generate higher revenue than new customers.
Since you need less resources to convince them to make another purchase, they are less costly than new customers.
Because they bring more revenue and cost less, retained customers generate higher ROI.
Retained customers have higher long term profitability:
Customer lifetime value (CLV) is the predicted profit from a customer during the entire lifetime of their relationship with the company. It is the product of purchase frequency and repeat purchase rate.
Since those two metrics are higher for retained customers than new customers, retain