Engaging Leads: Customer Acquisition vs. Retention
Mark Lemuel M
26 replies
This compares efforts and resources invested in acquiring new customers versus retaining and nurturing existing customers. which is better in the long run?
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Monica Mitchell@monica_mitchell
I want to recommend you such formula - Total Revenue divided into Number of Customers and then multiply by Average Customer Lifespan. I hope it will help you to make a right choice for your business
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@monica_mitchell this is an awsome formula to take note off! thank you! followed you!
In business terms, Retention is probably more important as it helps to invest more in acquisition and allow for a higher CAC (customer acquisition cost)
If your retention is poor, your acquisition options may be limited. Also, why pour traffic/customers to a product that's broken/doesn't add much value (those being the key reasons for low retention rate)
Unless you're a once-and-done expensive product
@alex_skazka Yes you are right! therefore retention for long run is a game changer rather than not keeping clients. how do you apply retention in your product? I just reviewed , followed and upvoted your product! hope you can review my product too!
Retention is cheaper. It generally costs less to keep a customer than to get a new one. Plus, loyal customers can lead to word-of-mouth marketing.
@ollieesmith_ yes. if your product is really good! it will sell itself!
AutoAE
It still depends on the product. For products with a short customer lifetime, customer acquisition is more important.
@liu_alex1 yes! also true! But yeah building network of people like your clients will justify your business stability! followed , upvoted , and reviewed your product! hope you do the same!
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I think Retention would be better in the long run as customer acquisition cost is always high.
@cedric_mathias absolutely true! consistent clients is the key! if you solve for their convenience then you are a business model! how do you apply retention in your business? followed, upvoted and reviewed your product! hope you do the same too!
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@kilopolki Thank you Mark please share your product with me
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Launching soon!
This is a double-edged first as if you invest in either, you end up losing customers and revenue in the long run. Better to have a mix.
But, since the question is to pick one, I'd say retention.
If your retention game is right, new customers will come in via brand advocacy, loyalty, good customer support, etc.
Launching soon!
@kilopolki Okay, do you have any suggestions, tips, etc. on how to gear your brand towards that? or start building it that way?
@adeeb_malik yeah both are important ! but I think in long run retention is the best coz you are already building relationships with clients.
@adeeb_malik It is better to connect with client's perspective and pain points and give them solution to your product! remember that convenience is the key on what businesses always provide ! we are here to serve people and that is God's blessing!
Launching soon!
@kilopolki That’s a beautiful way to put it. Thanks for sharing your thoughts!
Great question Mark, In the longer run, both customer acquisition and retention are important, but the balance usually depends upon the business model and growth stage.
@yatheen_brahma yes awsomely true! can't wait for your product launch!
Both are essential for growth.
I believe acquiring new customers and retaining and nurturing existing ones are inseparable. Good feature iterations attract new users and enhance the experience for current ones. Perhaps conducting surveys on which features users most want to see updated would be a great way to retain customers.
This is such a great question. Both are essential, and it depends on the purpose of your product-- growth or improving features.
@yuan_tian5 yes both are important!
A retained customer works as a earned media for your brand so I chose retention.
Retention is cost effective as there is a high chance that the old customer would buy the product again.