Traditionally, SMBs have invested the majority of their time, energy and budget in acquiring new customers. However, a recently-released report from BIA/Kelsey and Manta, based on findings from nearly 1,000 members of Manta’s online directory community, indicates a clear shift in focus to engagement and retention.
According to the report, “Achieving Big Customer Loyalty in a Small Business World,” (follow the link for free download), 61 percent of the SMBs surveyed report that more than half of their revenue comes from repeat customers, rather than new business. Meanwhile, a repeat customer spends 67 percent more than a new customer. As a result, only 14 percent of SMB owners now spend the majority of their annual marketing budget on acquisition.
This marks a dramatic change from just two years ago, when BIA/Kelsey’s Local Commerce Monitor survey highlighted that SMBs heavily prioritized customer acquisition over retention.
However, effective SMB retention efforts – notably loyalty programs and customer relationship management (CRM) systems – remain spotty. Only 34 percent of SMB owners have any loyalty program at all, and of those who do, the majority are offline, thus failing to take advantage of the efficiencies and insights that digital platforms provide.
BIA/Kelsey and Manta will present findings from the report and discuss best practices for SMBs in a free webinar on Tuesday, May 15. Please follow this link to register.