Marketoonist Tom Fishburne sums up what I believe is the biggest mistake marketers make: focusing on acquiring new customers as the expense of existing customers. We all know it costs five times more to attract a new customer than to retain an existing customer. According to Bain, a 5% increase in customer retention can increase a company’s profitability by 75%. Focusing on retaining current customers, especially ones who will recommend you and spread the word, is literally the subject of my three books.
So in looking at YOUR marketing plan for this year, is it weighted more towards acquiring new customers or retaining your current ones?