Retention or not to Retention?

Updated: Sep 21, 2018

Some companies choose not to focus on retention, we can tell what we've found!

The answer is simple.



Despite the number of researches done on this topic, resulting in favour of retention, the companies are still questioning the importance of maintaining customers rather than acquiring new ones.


Retaining customers has more than one benefits and we will cove build a loyal relationship is the rule number one of any business- here is why.



Difference between New customers and Old customers


In order to choose whether to pursue with retention of existing customers or acquisition of a new ones, it is essential to know the pros and cons of working with this two groups. Each category has its own characteristics, requirements and outcomes.


"Engaged consumers buy 90% more frequently, spend 60% more per transaction"

New Customers Can Be a Gamble in Itself

  • Purchase less frequently in random time periods

  • Generate lower ROI (Return on Investment)('long-term speaking')

  • Requires higher investment in marketing

  • Takes more resources and efforts

  • Their value of the customer is uncertain

Statistical study show that it is 5 X more expensive to attract new customer than retain existing one. Not impossible! However, it does require much more resources to convert a new customer into a loyal customer and genuinely harder to gain their trust in a new brand.

Companies such as, Reactivation Group provide services to your brand in successfully converting New Registered Customer (NRC) to New Depositing Customers (NDC).


The idea of growing the business and attracting new customers sounds very attractive. Who would say no to increasing their income? However, there are a few problems, which you might consider before you start investing in your new marketing strategy.

The problem is the missing knowledge of the customer. For instance, when we are dealing with already existing customers, we have data to which we can calculate the value of the specific customer. We know how much he/she has spend during their customer life cycle.

We know how active he/she is and we can also calculate how much he/she is going to spend in the future. Meanwhile working with a new customer is a step into the dark room.

High investments in one-time customers might lead towards high marketing costs with no changes on Return of Investment (ROI).


It is therefore important to control the balance between the costs of Customer Acquisition and your Return on Investment.


The answer is simple: "Retention is valuable to the sustainability of a company"

Reengaging Dormant Customers


When you reengage your dormant customers, you get more than reactivation. You increase your loyalty and brand identity. The goal is to keep valuable customers interested in your brand and involve them in a deeper, more sustainable relationship. It is difference to traditional “push” marketing, engagement pulls people in by conversations, answering and solving customer needs.


Customers appreciate attention and they value the efforts made for their satisfaction. They like to be entertained and prefers personal contact instead of pre-scripted dialog with a machine.


Positive attitude and “always on” approach is the right choice when communicating with a customer. Reactivation Group helps provide the constant presence that will help you to reach the ultimate goal - to build an emotional connection between your customers and your brand.


By Eva Zlochová

#reactivatingoldcustomers #rententionsolutions #dormantcustomers


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