From the course: Growth Marketing Foundations
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Retain your users to improve sales
From the course: Growth Marketing Foundations
Retain your users to improve sales
- Retention is the act of keeping your current customers loyal. If you have a subscription model that's keeping them subscribed month over month and if you sell individual products, that's turning them into a repeat buyer. A study conducted by Bain and Company revealed that a 5% increase in customer retention can mean a 30% increase in company profitability. That's an impressive return. And it's not just the repeat purchasing that improves the bottom line, it's also because of the reach a loyal customer has. They become an inexpensive marketing vessel by sharing your message to their friends. It can be easy to get tunnel vision on viral growth and ignore the warning signs of decreasing retention rates. A common question is should I focus on growth or on retention? And the answer really depends. If you're proving out an MVP and you're in the early stage of your product life cycle, retention might take a back seat. But…
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