Does Your B2B Company Have a Retention Marketing Strategy? | Customer Success | Scoop.it

The cost of acquiring new clients is always much higher than the cost of servicing existing ones, so customer retention marketing should be on the top of all company’s priorities. Companies are so focused on acquisition marketing that they often forget about their most valuable asset, their current customers. It costs 6-7 times more to acquire a new customer than it does to keep an existing one. Furthermore, you are 4 times more likely to close business with an existing customer than you are with a new prospect.

 

The probability of selling to an existing customer is 60-70%. The probability of selling to a new prospect is 5-20% (from Marketing Metrics). Research also shows that a 10% increase in customer retention results in a 30% increase in the value of the company (from Bain and Co.) Anyone working at a SaaS (Software as a Service) or any service business. knows that churn and customer renewals are critical metrics for the business. Yet, many marketing plans are so focused on customer acquisition that they largely ignore customer retention.

 

Here are 7 steps to a better B2B Retention Marketing strategy.