Recent Sponsored Research from BIA/Kelsey and Manta, based on a survey of members of Manta’s online directory community, uncovered a notable trend: more than ever, SMBs are turning their attention and efforts to customer retention, prioritizing it above even acquisition. BIA/Kelsey and Manta will discuss this paradigm shift and its implications for SMBs in a free webinar on Thursday, May 15. Follow this link to register.
It’s a sensible shift, as acquiring customers is typically much more costly than retainer existing ones. Plus, a five percent increase in customer retention can lead to a 25-100 percent rise in profits (source: “The Loyalty Effect”).
Still, SMBs historically have devoted more time, energy and out-of-pocket resources to acquisition. Until now. In the survey, 61 percent of SMBs reported that more than half of their revenue comes from repeat customers, and only 14 percent spend the majority of their annual marketing budget on acquisition.
Change is afoot, starting with the recognition that existing customers are fruitful ones. However, marketing to and engaging with them effectively remains a trouble spot, particularly on digital platforms. Survey findings show that only 34 percent of SMB owners maintain 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.
How can SMBs take better advantage of digital platforms to connect with their best customers? Join the webinar on May 15, where BIA/Kelsey and Manta will share tips and best practices to jumpstart the SMB loyalty movement.