Al Gomez en SEO, IT - Information Technology, Digital Marketing Owner and Founder • Dlinkers - Digital Marketing & Consultancy 12/3/2018 · 2 min de lectura · +600

Acquisition vs. Retention: Which Should You Put Focus More?

Acquisition vs. Retention: Which Should You Put Focus More?

Sales are the lifeblood of most businesses. In order to survive and keep up with the race as the competition in your industry gets tough, it is crucial for your business to continuously attract both returning and new customers. This is important so you can sustain business growth.

Customer acquisition and retention are two important metrics which can help you determine your performance in terms of ROI. These are essential marketing metrics you need to consider to maximize your monetizing efforts.

Although attracting new leads and keeping your current customers engaged with your business is equally important, they may require different marketing tactics. You may find yourself confused on which to prioritize.

So to help you decide, let’s find out how acquisition or retention can improve your business performance.

Which Is Worth The Cost?

According to Invesp, customer acquisition may cost five times as much as customer retention. This isn’t surprising. To acquire new leads, your marketing team needs to cross the buyer’s journey, from brand awareness to purchasing decision. The marketing process could include various tactics such as;

· Customer Targeting

· Brand Awareness

· Building Of Traffic

· Lead Generation

· Conversion

· Sales

You need to repeat the steps over and over again to catch new eyeballs and it would require you a lot of effort, time and money to complete the whole process.

Customer retention, on the other hand, will not require you too much marketing budget. Since you don’t have to repeatedly cross the buyer’s journey, the process is cut short. You can shift your focus on influencing and encourage current customers to return.

Assessment, nurturing connection and sales conversion. In retention, you only need to focus on these three fundamental steps to gain consumer’s loyalty.

From Acquisition To Retention

Customer retention may cost less than acquisition. But unless you gain enough number of new leads, you retention efforts will be deemed useless. As the demand for the industry changes, customer retention isn’t enough to sustain growth. Somehow, you need to acquire the ideal customers and lead them down the sales funnel to keep your customer retention efforts going.

You must know that there are two types of audience; your current audience and your ideal ones. While the former is a good target for retention, you need to put more effort to reach out to the latter. These ideal consumers are the people who fit just right to the criteria for your prospect market. These are the people who could potentially be your brand advocates and loyal consumers. These are the type of consumers whom you can a have greater chance for retention.

So before you decide to ditch customer acquisition, ask yourself; have you gained enough number of customers from your ideal consumers? If you haven’t yet, perhaps, it is not the ideal time to give up your acquisition campaign.

The Positive Impact Of Retention To Customer Acquisition

Your success in customer retention has a positive impact on your acquisition efforts. As you increase the number of loyal consumers, you also increase the likelihood of your business getting referrals.

According to studies, more than 40% of Americans say that they will likely to try out a company or business referred to them by a family member or a friend. It is through customer retention you create loyal customers. You can then leverage your loyal customers and encourage them to recommend you to their friends, family members or even in social media. The more they spread a positive word about your business, the more chances of acquiring new customers. Hence, it creates a flow from retention to the acquisition.

Your Business Needs the Right Combination

Whether you focus on acquiring new customers or retaining old ones, it is important that you know how to attract the right customers towards your business. It can be confusing at first. Figuring out which one to prioritize can be overwhelming. But when you know what your business really needs, you will definitely figure out the right combination of acquisition and retention campaign your business has to do.

So whether you need to put more effort in acquisition than retention or otherwise, it is crucial that you don’t give up the other. Acquiring new customers is one thing and keeping them is another. So think about how you can cater both new and returning customers so you can take advantage of both.


Al Gomez is an SEO Expert from the Philippines. He is in IT business industry for almost 12 years. In the year 2009, he co-founded a BPO Company (Dlinkers). With the aid of its major services: SEO, Application Development, Social Media Marketing, Content Marketing, Email Marketing, Web Design & Development, Pay per click, it became a full digital marketing agency in 2014. His mission is to provide unique value proposition and advanced SEO strategy for specific niches to every business owner with the aim to increase Google rankings through SEO.