BANKING AFFAIRS

Detailed explanation-1: -Acquiring a new customer can cost five times more than retaining an existing customer. Increasing customer retention by 5% can increase profits from 25-95%. The success rate of selling to a customer you already have is 60-70%, while the success rate of selling to a new customer is 5-20%.

Detailed explanation-2: -From a business perspective, it’s far easier to sell to existing customers than to bring on new ones. It usually means that your sales team doesn’t have to prospect, qualify, or build a relationship. Your customer success team likely knows them too. And your business already has trust and credibility with the customer.

Detailed explanation-3: -4. Your existing customers are 50% more likely to try new products and services your company releases, and they’re willing to spend 31% more compared to your new customers. (Invesp)

Detailed explanation-4: -Loyal Customers are More Profitable Not only is loyalty cheaper, it has better returns. According to research, engaged consumers buy 90% more frequently, spend 60% more per transaction and are five times more likely to indicate it is the only brand they would purchase in the future.