Of course expanding the number of people who buy your products or services seems like a very tangible growth goal. It does not always mean a productive customer, who leaves a high average ticket and returns frequently; it could mean gaining just Email Data one customer, who converted into a transaction with a variable amount. An article published by the Harvard Business Review found that acquiring a customer can cost between 5 and 25 times more than retaining an existing customer. In e-commerce.
The probability of selling to a repeat customer is around 60% to 70%. However, the probability of selling to a new one ranges from 5% to 20%. Additionally, returning customers spend an average of 67% more than first-time customers. Data backed by a study conducted by Bain & Company , which found that a 5% increase in retention rate can lead to an increase in profit between 25% to 95%. Focusing on returning customers – as well as getting occasional customers to make another purchase – paves the way for you to consolidate your strategy by measuring LTV.