I am not going to validate the statistics by giving you the overall macro numbers provided by the research companies. Rather, I have evaluated my own business and compared the cost of acquiring new client with the cost of retaining the existing one.
I reached the following broad conclusions:
Shall we focus only on retaining the customers?
The retention is the outcome of the acquisition, meaning you cannot to retention unless you acquire a client. So both the processes are equally important and required for the growth of any company. A company cannot grow without the acquisition of the new customers and cannot afford to lose the retained client. So, the process of acquisition and the retention must go on simultaneously with almost equal efforts should be made to create the balance between the two.
How to make both ends meet that is the retention and the acquisition?
We should design a mechanism or the system which facilitates our aim of retaining and serving the existing client and at the same time helps us in acquiring new a customer base. The affiliate marketing and the referral programs are one of the effective techniques to make the both ends meet. In this you create your own product or the services, in my case, these are e-books and the feasibility spread-sheet, and offer your existing clients a certain percentage of the sales done by for referring the new customer. A win-win situation for both of you; you get the sales and he gets the credit for his efforts in the monetary terms and the kind acknowledgement by you. Remember, your must be relevant and is of good quality meeting the desired standards of the customers.
Surprise your existing clients and the new prospects with discount offers, fresh and engaging content and new services
You should not aim at the one-time sale with your customer. It has been found that most of the companies tend to forget about their clients and stop the communication after the first sale, restricting their own growth. Although, it is true that with the increase in the client base, it becomes difficult to personally meet every client. But again with the advancement of the technology, you can still provide the personal touch to your clients like:
You can communicate regularly with all your clients through e-mail. Even you can share the latest updates with them. You can even customize the e-mails as per the interest of the readers, resulting in more leads which can eventually convert into sales.
E-book: In the Pipeline - Keep, Convert, and Close More Leads in Less Time
E-book: 10 Free Email Templates to Close a Sale
Your focus should be on the both aspects, the client acquisition, and the client retention. In fact, you need to create a system as mentioned in the article to cater both the processes. Most companies pay more attention to acquiring clients than on retaining them, it is just like filling a glass with a hole at the bottom. From my point of view, equal attention to both of them can serve the actual purpose and gives you the real growth. There are numerous channels to support this methodology like e-mail marketing, content marketing, SEO (Search engine optimization), affiliate marketing, social media marketing and the referral marketing. The point is how effective you are in driving the new sales and retaining the existing one while implementing these marketing strategies.