Thursday, August 4, 2011

Digital Loyalty Matters

Loyalty always matters in business, for the simple reason that acquiring new customers is expensive, compared to retaining and cultivating long-time and repeat buyers. That is true for social media as well as for all other marketing activities of a business. Read more here.


One rule of thumb is that it costs six to seven times as much to acquire a new customer as to retain a current customer. The other important metric is that customers any retailer or brand has had for a longer time tend to buy more, represent higher profit margins and cost less to support (they know the product, know how to use it and don't have as many questions in the billing, delivery or other operational areas).


Ft-existing-customers-10-16-520x980


  

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