Acquiring a new customer can be a costly affair. In fact, an article published by Harvard Business Review
, found that gaining a customer can cost anywhere between five and 25 times more than retaining an existing one. Additionally, a study conducted by Bain & Company
found that a 5% increase in retention rate can lead to an increase in profit between 25% to 95%. This makes it imperative that your business identifies and nurtures the most valuable customers that interact with your company. By doing so, you’ll gain more total revenue resulting in an increase in customer lifetime value.