The average repeat customer spends 67 percent more in months 31-36 of their relationship with a business than they do in months 0-6.
According to the Rosetta Consulting study, highly-engaged customers buy 90 percent more often and spend 60 percent more per transaction.
The Retentionomics study by Forbes from 2016 points out important results about Customer Retention. Forbes is a global media company, focusing on business, investing, technology, entrepreneurship, leadership and lifestyle.
The report, which was based on a global study of 300 CEOs and media and retail executives, shows that companies that increase their investments in customer retention, realize important advantages in increasing market share, managing customer churn and optimizing acquisition over those that invest primarily in customer acquisition.
One of the notable finding is that retailers and publishers that increased their spending on retention in the last 1-3 years had a near 200% higher possibility of increasing their market share in the last year over those spending more on acquisition. More details about the results you can read in the original article here.
Neil Lustig, CEO, Sailthru: “Too often, executives and marketers focus their efforts on short-term growth and we’re seeing the impact of that in retail and media company earnings reports. There are many studies that document the potential of retention, but none that dive into how well retail and media companies
understand the economics of retention. The Retentionomics study validates that focusing on high-quality customers is a more efficient way to reach sales and revenue goals than simply delivering new customers. The most successful modern marketers invest in and set specific retention goals, measure the value of their valued customers through that lens, and use that data to inform their acquisition strategies and deliver sustained profitable growth.”
An important result from the Retentionomics research is the role that personalization plays in the whole marketing strategy. It has been proven to increase the total percentage of customers, in addition to increasing the value and revenue derived from those audiences.
July 3, 2018
July 3, 2018