"Most marketers define their job as getting customers in the door. Shana Lynn Bresnahan, a retention strategist who helps small businesses scale courses, memberships, and coaching programs, argues that stopping at the sale is where most businesses leave significant money on the table. There are both a mission and a business argument for investing in the post-sale experience."
"Profitability in any business comes down to two levers: increasing customer lifetime value (LTV) and decreasing customer acquisition cost (CAC). Marketers typically fixate on the acquisition side - finding cheaper ad channels, improving conversion rates - while ignoring the compounding impact of retention on the other side of the equation."
"Consider a $47-per-month subscription membership. At an 80% monthly retention rate, meaning you lose 20% of customers every month, each customer is worth roughly $235 in lifetime value. Improve retention by just ten percentage points to 90%, and that lifetime value doubles to approximately $470. Improve it by another five points to 95%, and it doubles again."
Most marketers prioritize acquiring new customers while neglecting post-sale experiences, leaving significant revenue on the table. Customer experience directly impacts both mission fulfillment and profitability. Lifetime value grows exponentially with retention improvements: a subscription at 80% monthly retention generates $235 per customer lifetime value, which doubles to $470 at 90% retention and doubles again at 95%. This compounding effect rivals compound interest. Retention also enables upselling customers to higher-level programs and additional products. A three-part framework exists to systematically improve customer retention and transform satisfied customers into effective marketing channels.
Read at Social Media Examiner
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