The document discusses the importance of customer retention for businesses. It notes that acquiring new customers can be expensive, while retaining existing customers has higher success rates and profitability. Specifically, growing customer retention by 5% can increase profits by 25-95%. The document provides tips for improving retention such as personalized communication, quick issue resolution, generous deals for loyal customers, and streamlining customer service processes.

2. When my business started to get off
the ground, my first instinct was
to leverage my resources
to get new customers.
I budgeted $10,000 for
pay-per-click digital ads on Google
and Facebook to grow my business online.

3. When my business started to get off
the ground, my first instinct was
to leverage my resources
to get new customers.
I budgeted $10,000 for
pay-per-click digital ads on Google
and Facebook to grow my business online.
People spend their entire careers
studying and optimizing their
paid media strategy.
...& paying an agency to
run your PPC campaigns can
have a massive up-front cost.

4. When my business started to get off
the ground, my first instinct was
to leverage my resources
to get new customers.
I budgeted $10,000 for
pay-per-click digital ads on Google
and Facebook to grow my business online.
People spend their entire careers
studying and optimizing their
paid media strategy.
...& paying an agency to
run your PPC campaigns can
have a massive up-front cost.
My ad copy wasn’t good enough.
My website wasn’t optimized for conversions.
I wasted time and money because I had little expertise
or experience with paid media marketing.

5. When my business started to get off
the ground, my first instinct was
to leverage my resources
to get new customers.
I budgeted $10,000 for
pay-per-click digital ads on Google
and Facebook to grow my business online.
People spend their entire careers
studying and optimizing their
paid media strategy.
...& paying an agency to
run your PPC campaigns can
have a massive up-front cost.
My ad copy wasn’t good enough.
My website wasn’t optimized for conversions.
I wasted time and money because I had little expertise
or experience with paid media marketing.
In my first business, customer
acquisition was my only focus.
It was a quick way to get
burned out –
and worse...
I didn’t focus
on my customers.

6. When my business started to get off
the ground, my first instinct was
to leverage my resources
to get new customers.
I budgeted $10,000 for
pay-per-click digital ads on Google
and Facebook to grow my business online.
People spend their entire careers
studying and optimizing their
paid media strategy.
...& paying an agency to
run your PPC campaigns can
have a massive up-front cost.
My ad copy wasn’t good enough.
My website wasn’t optimized for conversions.
I wasted time and money because I had little expertise
or experience with paid media marketing.
In my first business, customer
acquisition was my only focus.
It was a quick way to get
burned out –
and worse...
I didn’t focus
on my customers.The Yin to Customer Acquisitions’ Yang.

7. When my business started to get off
the ground, my first instinct was
to leverage my resources
to get new customers.
I budgeted $10,000 for
pay-per-click digital ads on Google
and Facebook to grow my business online.
People spend their entire careers
studying and optimizing their
paid media strategy.
...& paying an agency to
run your PPC campaigns can
have a massive up-front cost.
My ad copy wasn’t good enough.
My website wasn’t optimized for conversions.
I wasted time and money because I had little expertise
or experience with paid media marketing.
In my first business, customer
acquisition was my only focus.
It was a quick way to get
burned out –
and worse...
I didn’t focus
on my customers.The Yin to Customer Acquisitions’ Yang.
Every happy client that you’ve
done business with is a
super-charged lead.
The probability of selling to a
new prospect is around 5-20%.
For existing customers?
Close to 60-70%.
Growing retention
by 5% increases
profits by 25–95%.

8. When my business started to get off
the ground, my first instinct was
to leverage my resources
to get new customers.
I budgeted $10,000 for
pay-per-click digital ads on Google
and Facebook to grow my business online.
People spend their entire careers
studying and optimizing their
paid media strategy.
...& paying an agency to
run your PPC campaigns can
have a massive up-front cost.
My ad copy wasn’t good enough.
My website wasn’t optimized for conversions.
I wasted time and money because I had little expertise
or experience with paid media marketing.
In my first business, customer
acquisition was my only focus.
It was a quick way to get
burned out –
and worse...
I didn’t focus
on my customers.The Yin to Customer Acquisitions’ Yang.
Every happy client that you’ve
done business with is a
super-charged lead.
The probability of selling to a
new prospect is around 5-20%.
For existing customers?
Close to 60-70%.
Growing retention
by 5% increases
profits by 25–95%.
Growing customer
retention by 5%
increases profits
by 25–95%.
80% of future profits
come from just 20% of
your existing customers.
It starts with understanding your current retention...

9. When my business started to get off
the ground, my first instinct was
to leverage my resources
to get new customers.
I budgeted $10,000 for
pay-per-click digital ads on Google
and Facebook to grow my business online.
People spend their entire careers
studying and optimizing their
paid media strategy.
...& paying an agency to
run your PPC campaigns can
have a massive up-front cost.
My ad copy wasn’t good enough.
My website wasn’t optimized for conversions.
I wasted time and money because I had little expertise
or experience with paid media marketing.
In my first business, customer
acquisition was my only focus.
It was a quick way to get
burned out –
and worse...
I didn’t focus
on my customers.The Yin to Customer Acquisitions’ Yang.
Every happy client that you’ve
done business with is a
super-charged lead.
The probability of selling to a
new prospect is around 5-20%.
For existing customers?
Close to 60-70%.
Growing retention
by 5% increases
profits by 25–95%.
Growing customer
retention by 5%
increases profits
by 25–95%.
80% of future profits
come from just 20% of
your existing customers.
It starts with understanding your current retention...
CE = Number of customers at end of period
CN = Number of new customers acquired during period
CS = Number of customers at start of period
The answer should inform your strategy, but...
It’s entirely dependent on what your business does.
The general benchmark to hit is 85%+. If you’re below
this metric, you need to adjust your strategy.

10. When my business started to get off
the ground, my first instinct was
to leverage my resources
to get new customers.
I budgeted $10,000 for
pay-per-click digital ads on Google
and Facebook to grow my business online.
People spend their entire careers
studying and optimizing their
paid media strategy.
...& paying an agency to
run your PPC campaigns can
have a massive up-front cost.
My ad copy wasn’t good enough.
My website wasn’t optimized for conversions.
I wasted time and money because I had little expertise
or experience with paid media marketing.
In my first business, customer
acquisition was my only focus.
It was a quick way to get
burned out –
and worse...
I didn’t focus
on my customers.The Yin to Customer Acquisitions’ Yang.
Every happy client that you’ve
done business with is a
super-charged lead.
The probability of selling to a
new prospect is around 5-20%.
For existing customers?
Close to 60-70%.
Growing retention
by 5% increases
profits by 25–95%.
Growing customer
retention by 5%
increases profits
by 25–95%.
80% of future profits
come from just 20% of
your existing customers.
It starts with understanding your current retention...
CE = Number of customers at end of period
CN = Number of new customers acquired during period
CS = Number of customers at start of period
The answer should inform your strategy, but...
It’s entirely dependent on what your business does.
The general benchmark to hit is 85%+. If you’re below
this metric, you need to adjust your strategy.
In 2015, customers demand:
Personalization
Cost-Effective Pricing
Fast and Efficient Service
56% of marketers cite email as the best available
tool for customer retention – but don’t ignore social!

11. When my business started to get off
the ground, my first instinct was
to leverage my resources
to get new customers.
I budgeted $10,000 for
pay-per-click digital ads on Google
and Facebook to grow my business online.
People spend their entire careers
studying and optimizing their
paid media strategy.
...& paying an agency to
run your PPC campaigns can
have a massive up-front cost.
My ad copy wasn’t good enough.
My website wasn’t optimized for conversions.
I wasted time and money because I had little expertise
or experience with paid media marketing.
In my first business, customer
acquisition was my only focus.
It was a quick way to get
burned out –
and worse...
I didn’t focus
on my customers.The Yin to Customer Acquisitions’ Yang.
Every happy client that you’ve
done business with is a
super-charged lead.
The probability of selling to a
new prospect is around 5-20%.
For existing customers?
Close to 60-70%.
Growing retention
by 5% increases
profits by 25–95%.
Growing customer
retention by 5%
increases profits
by 25–95%.
80% of future profits
come from just 20% of
your existing customers.
It starts with understanding your current retention...
CE = Number of customers at end of period
CN = Number of new customers acquired during period
CS = Number of customers at start of period
The answer should inform your strategy, but...
It’s entirely dependent on what your business does.
The general benchmark to hit is 85%+. If you’re below
this metric, you need to adjust your strategy.
In 2015, customers demand:
Personalization
Cost-Effective Pricing
Fast and Efficient Service
56% of marketers cite email as the best available
tool for customer retention – but don’t ignore social!
Tailored Messaging:
Use order history, interests, name, location, and
any other data you have to customize communication.
The Little Things:
Don’t be afraid to get creative: hand-written notes,
USB drives, and other industry-specific offers can
leave a strong and lasting impression.

12. When my business started to get off
the ground, my first instinct was
to leverage my resources
to get new customers.
I budgeted $10,000 for
pay-per-click digital ads on Google
and Facebook to grow my business online.
People spend their entire careers
studying and optimizing their
paid media strategy.
...& paying an agency to
run your PPC campaigns can
have a massive up-front cost.
My ad copy wasn’t good enough.
My website wasn’t optimized for conversions.
I wasted time and money because I had little expertise
or experience with paid media marketing.
In my first business, customer
acquisition was my only focus.
It was a quick way to get
burned out –
and worse...
I didn’t focus
on my customers.The Yin to Customer Acquisitions’ Yang.
Every happy client that you’ve
done business with is a
super-charged lead.
The probability of selling to a
new prospect is around 5-20%.
For existing customers?
Close to 60-70%.
Growing retention
by 5% increases
profits by 25–95%.
Growing customer
retention by 5%
increases profits
by 25–95%.
80% of future profits
come from just 20% of
your existing customers.
It starts with understanding your current retention...
CE = Number of customers at end of period
CN = Number of new customers acquired during period
CS = Number of customers at start of period
The answer should inform your strategy, but...
It’s entirely dependent on what your business does.
The general benchmark to hit is 85%+. If you’re below
this metric, you need to adjust your strategy.
In 2015, customers demand:
Personalization
Cost-Effective Pricing
Fast and Efficient Service
56% of marketers cite email as the best available
tool for customer retention – but don’t ignore social!
Tailored Messaging:
Use order history, interests, name, location, and
any other data you have to customize communication.
The Little Things:
Don’t be afraid to get creative: hand-written notes,
USB drives, and other industry-specific offers can
leave a strong and lasting impression.
Bootstrapping:
Small businesses can benefit from shaving off
staff and incidental overhead. Every dollar matters!
Be Generous:
Return customers and word-of-mouth is worth
taking an up-front hit. Be generous with your deals,
discounts, and sales.

13. When my business started to get off
the ground, my first instinct was
to leverage my resources
to get new customers.
I budgeted $10,000 for
pay-per-click digital ads on Google
and Facebook to grow my business online.
People spend their entire careers
studying and optimizing their
paid media strategy.
...& paying an agency to
run your PPC campaigns can
have a massive up-front cost.
My ad copy wasn’t good enough.
My website wasn’t optimized for conversions.
I wasted time and money because I had little expertise
or experience with paid media marketing.
In my first business, customer
acquisition was my only focus.
It was a quick way to get
burned out –
and worse...
I didn’t focus
on my customers.The Yin to Customer Acquisitions’ Yang.
Every happy client that you’ve
done business with is a
super-charged lead.
The probability of selling to a
new prospect is around 5-20%.
For existing customers?
Close to 60-70%.
Growing retention
by 5% increases
profits by 25–95%.
Growing customer
retention by 5%
increases profits
by 25–95%.
80% of future profits
come from just 20% of
your existing customers.
It starts with understanding your current retention...
CE = Number of customers at end of period
CN = Number of new customers acquired during period
CS = Number of customers at start of period
The answer should inform your strategy, but...
It’s entirely dependent on what your business does.
The general benchmark to hit is 85%+. If you’re below
this metric, you need to adjust your strategy.
In 2015, customers demand:
Personalization
Cost-Effective Pricing
Fast and Efficient Service
56% of marketers cite email as the best available
tool for customer retention – but don’t ignore social!
Tailored Messaging:
Use order history, interests, name, location, and
any other data you have to customize communication.
The Little Things:
Don’t be afraid to get creative: hand-written notes,
USB drives, and other industry-specific offers can
leave a strong and lasting impression.
Bootstrapping:
Small businesses can benefit from shaving off
staff and incidental overhead. Every dollar matters!
Be Generous:
Return customers and word-of-mouth is worth
taking an up-front hit. Be generous with your deals,
discounts, and sales.
Streamline Communication:
72% of participants defined bad service as having
to explain their problem more than once.
Develop a Flowchart:
You might find that customer complaints stem from a
few kinks you haven’t ironed out in your business yet.
Develop materials to quickly identify, solve, and please.

14. When my business started to get off
the ground, my first instinct was
to leverage my resources
to get new customers.
I budgeted $10,000 for
pay-per-click digital ads on Google
and Facebook to grow my business online.
People spend their entire careers
studying and optimizing their
paid media strategy.
...& paying an agency to
run your PPC campaigns can
have a massive up-front cost.
My ad copy wasn’t good enough.
My website wasn’t optimized for conversions.
I wasted time and money because I had little expertise
or experience with paid media marketing.
In my first business, customer
acquisition was my only focus.
It was a quick way to get
burned out –
and worse...
I didn’t focus
on my customers.The Yin to Customer Acquisitions’ Yang.
Every happy client that you’ve
done business with is a
super-charged lead.
The probability of selling to a
new prospect is around 5-20%.
For existing customers?
Close to 60-70%.
Growing retention
by 5% increases
profits by 25–95%.
Growing customer
retention by 5%
increases profits
by 25–95%.
80% of future profits
come from just 20% of
your existing customers.
It starts with understanding your current retention...
CE = Number of customers at end of period
CN = Number of new customers acquired during period
CS = Number of customers at start of period
The answer should inform your strategy, but...
It’s entirely dependent on what your business does.
The general benchmark to hit is 85%+. If you’re below
this metric, you need to adjust your strategy.
In 2015, customers demand:
Personalization
Cost-Effective Pricing
Fast and Efficient Service
56% of marketers cite email as the best available
tool for customer retention – but don’t ignore social!
Tailored Messaging:
Use order history, interests, name, location, and
any other data you have to customize communication.
The Little Things:
Don’t be afraid to get creative: hand-written notes,
USB drives, and other industry-specific offers can
leave a strong and lasting impression.
Bootstrapping:
Small businesses can benefit from shaving off
staff and incidental overhead. Every dollar matters!
Be Generous:
Return customers and word-of-mouth is worth
taking an up-front hit. Be generous with your deals,
discounts, and sales.
Streamline Communication:
72% of participants defined bad service as having
to explain their problem more than once.
Develop a Flowchart:
You might find that customer complaints stem from a
few kinks you haven’t ironed out in your business yet.
Develop materials to quickly identify, solve, and please.
Customer retention as a serious growth
strategy hinges on having customers
in the first place.
Don’t forget to balance.
If you don’t have a customer acquisition
strategy working in tandem, your client base
will grow at least 50% slower.

15. When my business started to get off
the ground, my first instinct was
to leverage my resources
to get new customers.
I budgeted $10,000 for
pay-per-click digital ads on Google
and Facebook to grow my business online.
People spend their entire careers
studying and optimizing their
paid media strategy.
...& paying an agency to
run your PPC campaigns can
have a massive up-front cost.
My ad copy wasn’t good enough.
My website wasn’t optimized for conversions.
I wasted time and money because I had little expertise
or experience with paid media marketing.
In my first business, customer
acquisition was my only focus.
It was a quick way to get
burned out –
and worse...
I didn’t focus
on my customers.
Click here to read more about small business stategy
– from the experts.