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The Value of an Existing Customer

by Ethan Bloch on Oct 17, 2010

Have you ever wondered how much an existing customer was worth? Well, in most cases its a lot. In fact, it is 6 to 7 times more costly to acquire a new customer than to retain an existing customer. The following graphic details the the most interesting findings of several recent studies focused on customer acquisition, retention and attrition rates. It should help to put things in perspective for marketers and business owners.

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Lourdes Martinez

Great article! Thank you for sharing this information with us!
Anonymous

Loved the infographic — enough to blog about same here — http://www.canuckseo.com/index.php/2010/10/seo-clients-whats-a-new-one-cost/

And, I’ve added this blog to my morning reading list !!! Great info here!!!

Jim
http://strategyoutfitters.com/ Jeff Walters

Nicely done in the spirit of Fred Reichheld’s “The Loyalty Effect” a classic framework and the foundation work for Fred’s other work: http://www.loyaltyrules.com/loyaltyrules/effect_overview.html
http://www.evbart.com evbart

Here’s an interesting related case study on FreshDirect, they had to stop taking new customers (which at the time was their greatest source of revenue) to make their existing customers happy (and it eventually paid off)

http://boss.blogs.nytimes.com/2010/08/11/will-freshdirects-changes-work/

http://boss.blogs.nytimes.com/2010/08/17/freshdirects-lesson-the-price-of-bad-service/
http://www.theradicalear.com Thompson Morrison

Loved this. I gave it a shout on my blog The Radical Ear: http://bit.ly/9cTwez
http://www.strategiesgroup.com/distribution.html Ava Venson

Yeah, existing customers are very valuable! I agree! The best thing to do to maintain their lifetime values is to have proper CRM. It’s maintaining, valuing, updating, and caring for customers that create better relationship bonds. Feedback is also acceptable all throughout, so that a business will know what to improve and control of the services and products it offers.
http://beliefandaction.com/ Robert Pinto-Fernandes

Great infographic thanks. I think too many businesses suffer because they are constantly chasing new customers instead of engaging with their existing ones and capitalising on opportunities.
http://www.facebook.com/PawNewman Paul Newman

Very nice study and +1 for the infograph! Anyone know what industries these studies were based on? Guess it really doesn’t matter since the concept from what is told and seen, should still hold true. Would be cool to see a study on incentive based client reactivation versus acquiring.
Anonymous

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Programas de fidelizacion de clientes