01 Feb The ROI of Loyalty: Why Keeping Customers Pays Off
Did you know it can cost 5 to 25 times more to win a new customer than to keep an existing one? And that a modest 5% increase in retention can lift profits by 25% to 95%?
That’s math.
Loyalty is one of the most reliable growth strategies available to modern brands. Instead of endlessly pouring budget into replacing churned customers, high-performing companies double down on delighting the customers they already have. Loyal customers spend more, buy more often, and stay longer. Even better, they arrive preloaded with trust, which reduces friction at every future purchase.
In short, your existing customer base is not a maintenance cost. It’s a revenue engine and referral factory waiting to be activated.
Quick tip: Calculate your customer lifetime value (LTV) and compare it to your acquisition cost. Most leaders are surprised to discover that nurturing current relationships produces dramatically higher ROI than chasing cold leads.
Reflection: What are you doing today to make your best customers feel valued tomorrow?
Best,
BJ