Customer Acquisition Vs.Retention Costs – Statistics And Trends

Khalid Saleh

Khalid Saleh

Khalid Saleh is CEO and co-founder of Invesp. He is the co-author of Amazon.com bestselling book: "Conversion Optimization: The Art and Science of Converting Visitors into Customers." Khalid is an in-demand speaker who has presented at such industry events as SMX, SES, PubCon, Emetrics, ACCM and DMA, among others.
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Did you know that it costs five times as much to attract a new customer, than to keep an existing one? The first rule of any business is to retain customers and build a loyal relationship with them, and thereby avoid customer acquisition costs. It’s a well-established fact that 44% of companies have a greater focus on customer acquisition vs. 18% that focus on retention. Also, it’s true that only 40% of companies and 30% of agencies have an equal focus on acquisition and retention. Check out our infographic, ‘Customer Acquisition Vs. Retention Costs – Statistics And Trends’ for more such interesting and relevant facts.

Customer Acquisition Vs.Retention Costs Statistics and Trends

Infographic by- Invesp conversion rate optimization company

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Channels That Are Used The Most For Customer Acquisition

 

Channel %age
Websites 89%
E-mails 81%
Social media sites 72%
Direct mail 66%
SEO/PPC 65%
Web banners 60%
Mobile devices 34%
Aggregator websites 32%
Price comparison websites 18%

 

While more than 89% of companies see customer experience as a key factor in driving customer loyalty and retention, 76% of companies see CLV as an important concept for their organization

Only 42% of companies are able to measure Customer Lifetime Value (CLV) accurately.

The probability of selling to an existing customer is 60 – 70%, while the probability of selling to a new prospect is 5-20%.

Existing customers are 50% more likely to try new products and spend 31% more, when compared to new customers.

How Marketers Are Using Online Channels For Retention Or Acquisition

Online Marketing Channel Acquisition Retention Both Equally
Paid search 86% 2% 13%
Online display advertising 85% 4% 11%
SEO (natural search) 66% 6% 28%
Web retargeting 61% 22% 18%
Mobile web 52% 18% 30%
Mobile and web push notification 34% 39% 27%
Social media marketing 31% 28% 41%
Mobile apps 30% 44% 26%
Website 29% 16% 55%
Mobile messaging 23% 58% 19%
Email 21% 52% 27%

 

Most Effective Digital Marketing Tactics For Customer Retention

Channel %age
Email marketing 56%
Social media marketing 37%
Content marketing 32%
Referral marketing 26%
Search engine optimization 13%
Display advertising 12%
Mobile advertising 8%
Digital video advertising 7%
Affiliate marketing 6%
Paid search 4%

 

Increasing customer retention rates by 5% increases profits by 25% to 95%

More than two-thirds (70%) of respondents agreed that it’s cheaper to retain than acquire a customer.

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Khalid Saleh

Khalid Saleh

Khalid Saleh is CEO and co-founder of Invesp. He is the co-author of Amazon.com bestselling book: "Conversion Optimization: The Art and Science of Converting Visitors into Customers." Khalid is an in-demand speaker who has presented at such industry events as SMX, SES, PubCon, Emetrics, ACCM and DMA, among others.

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