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Why client retention is critical

Why client retention is critical

On average, 65% of a business’s custom comes from repeat customers – yet you’d be forgiven for thinking the main focus in most businesses is to win new clients, rather than retain what you’ve already got. Retention is critical to business success, and, crucially – it’s one of the top priorities for business leaders across all sectors, according to research in 2023[2].

The reasons why customer retention has to be a top priority are compelling.   

Client retention is cheaper than acquisition – clients already know your business and want your services; cross and up-selling is easier and far more cost-effective than finding and converting a new customer.

Something as small as a 5% increase in retention can give profits a boost by 25%. 

Repeat customers are worth more to your business – they purchase more over time, and it’s proven that loyal customers will buy more of your premium products and services.

Existing clients have a 60-70% chance of buying from you again – unlike a new customer where the percentage likelihood of a purchase drops to 5-20%[3].

Focusing on client retention can increase customer satisfaction; the more satisfied customers are, the more likely they are to create referrals. 

Returning customers  spend  67%[4] more  over time than first-time customers. 

[2] According to research from CX business Helphouse as cited in the Customer Service Trends Report 2023
[3] Data taken from Invespcro
[4] Taken from Bain and Company’s The Value of Online Customer Loyalty report

Moneypenny provides outstanding customer service, efficiently handling calls and chats to boost customer satisfaction and let businesses focus on their core tasks.

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