It is hard to both retain and acquire customers if they are not paying attention to your business. Therefore, increasing your retention of customers or acquiring new ones is very much about keeping a good connection with them. And there are several good reasons for doing so.
Existing customers are more likely to buy more
If you spend a bunch of resources acquiring 1 new customer that in the end costs you 1 existing customer, the deal is not worth it. At least not if you could have retained the existing customer by paying attention to his or her needs.
Why? Because in the end you end up with the same number of customers that you started out with – only you spend more resources attracting new customers than you would have spent on making existing ones buy more.
Established connections with existing customers requires less “selling” to make them buy more, than if you would have to try to establish a connection with a potential customer, whom have never heard of your business before. This is all common sense.
Now, do not rush out and scrap all your marketing campaigns targeting new customers. That is not the point. What is the point, however, is that you cannot focus solely on gaining new customers, if you want to increase sales – you need to balance the resources spend on retention of existing customers with the resources spend on acquiring new ones.