The most impactful thing I’ve learnt about #marketing this year? 👉 Retention is the foundation of growth E.g. fix the holes in the bucket before pouring more water in 🌊 🪣
That analogy also works for improving your website before focusing on paid ads! Just money down the drain..
Yep! It also costs less than acquiring new customers (those who won’t stick anyway since you aren’t working on retaining them).
Exactly! You phrased it perfectly
Too true as a new founder I was optimising for sales but now we optimise for retention and eventually advocates.. In a way the most expensive customer to loose are the existing ones.
I use the leaky pipe example, but, point taken!
Agree 100%. Do you also find that most teams have a bias towards pouring more water in the bucket though?
EVs │ Sustainability │Business Development │ Partnerships │ Sales Enablement
3yThere's been a lot of debate about this in the last 20 years ever since the revelation that it's 'cheaper to retain existing customers that win new ones' - which is obvious. But Marketing often forgets that it should look after the product, UX and customer, not just focus on 'lead gen' (Yuk!). And then someone points out that some existing customers actually cost you money i.e. they are unprofitable, so you should focus on winning better ones. Of course the correct approach is to run the business, which usually means losing some unprofitable customers and continually gaining new customers.