Increased Customer Retention: Why Small Businesses and Startups Should Use Windsor Circle

The strategy underpinning our software is that most customers of an online retailer buy once, and then disappear. Given the high cost of customer acquisition, and the fact that repeat buyers have an AOV higher than one time buyers, your profitability takes a significant step forward if you have a good retention marketing program in place. So many businesses make heavy investments in customer acquisition, and ignore retention as a growth opportunity. As a small company gets started, every customer (and subscriber) will be critical to its success and growth. You work hard to find, win and satisfy those early customers. Make sure you don't neglect customer retention.

If you want a quick gauge of your commitment to retention, look at your marketing budget. How much do you spend on social media and email marketing? How much do you spend on paid search, display advertising, comparison shopping engines and marketplaces? We find retailers commonly spend more than 80% of their budget on acquisition, and then under-capitalize customer retention. That's an expensive mistake, especially given that the lifetime value of a repeat buyer is 4.8X higher than the lifetime value of a one-time buyer.

Figure out your customer retention strategy. If you're not sure what that should look like, give us a call.


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