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Should customer retention have more attention?

Gaining the first customers were essential to start my company, as we put a limited amount of money to kickstart and launch the product.

We had a growing list of leads month after month. From an initial meeting to close a deal, our sales process could take more than 1 year! Customer acquisition was becoming time and money expensive as we gained our first customers and had new projects to deliver.

After a while, we decided to focus on customer retention over customer acquision.

Why?

  • We already knew their business model
  • We knew how their payment would affect our cashflow
  • Upselling to different areas within the same company was less expensive than acquiring new customers in new companies
  • Keeping them happy was key to bring new customers within the same corporation
  • "Guaranteed" revenue
  • We had a constant presence in the existing customers and in constant talks with potential new customers

Do you prioritise retention over acquisition? Why? Why not?

  1. 1

    This is a debate, upselling or selling to new customers. What has more ROI?

    1. 1

      It depends on the business, cost to acquire new customers, average LTV, etc. As almost everything, there’s no right or wrong

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