Customer retention vs. new customers

Customer Retention: Why It Drives More Revenue Than Acquiring New Customers

In the business world, a lot of energy is often spent on acquiring new customers. We also notice in conversations that "customer acquisition" remains a top priority. However, studies clearly show that loyal customers generate more revenue in the long run and contribute to stable business growth. This article gives you a quick overview of why customer retention is so important and how you can strengthen it with poinz.

1. Existing customers are more valuable: Studies show that acquiring a new customer can cost up to five times more than retaining an existing one. Loyal customers already trust your business and purchase more frequently, making them more profitable in the long run. Here’s an excerpt from the Bain Loyalty Report with more insights (in English).

2. Higher purchase probability and basket value: Existing customers are familiar with your products or services and are more likely to make a purchase. They also tend to spend more per transaction than first-time buyers, as they have already had positive experiences.

3. Word-of-mouth as free marketing: Satisfied customers recommend your business to others. Personal recommendations are one of the most effective and credible forms of advertising. New customers who come through referrals tend to be more loyal and easier to convert.

4. Stability and predictable revenue: A high proportion of returning customers ensures stable revenue and makes your business less dependent on seasonal trends or market fluctuations. Recurring customers secure predictable income and reduce financial risks.

5. Customer retention strengthens your brand: Long-term customer relationships enhance brand image. Customers identify more with businesses they regularly purchase from and are more likely to use additional services or premium products.

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Customer retention is significantly cheaper than acquiring new customers

Strategies for Customer Retention

• Excellent customer service:

  Fast response times, friendly support, and tailored solutions strengthen customer relationships.

• Personalized offers:

  Discounts, exclusive products, or customized content make customers feel valued. With poinz, you can send offers directly to your loyal customers and define your own target groups. For example, send a 2-for-1 coupon to your top 10% customers to thank them for their loyalty.

• Loyalty programs:

  Points systems, VIP programs, or bonus promotions encourage repeat purchases. The classic stamp card is one of the oldest and most effective concepts, still working well today. The digital stamp card from poinz modernizes this concept, offering additional benefits for both businesses and customers.

• Regular communication:

  Newsletters, social media, or personalized messages help maintain customer contact. With poinz, you can communicate and interact directly with your customers—whether through push notifications or your own content displayed in the poinz app and on poinz.ch

• Collect and implement feedback:

  Customer surveys and reviews help continuously improve services and better understand customer needs. Have you ever sent an interactive survey to your customers via poinz? Now is the time! 💡

Customer service is in your hands. For all other measures, we can support you in increasing customer retention and generating sustainable revenue. Our digital stamp card is at the forefront—your ultimate tool for success.

«Enjoy 10 coffees, and the 11th is free»

This concept remains one of the most effective forms of customer retention because it is simple to understand and apply. In the digital age, there's a growing belief that loyalty programs must be highly sophisticated. While this may be true for large corporations like Migros or Coop, complex and expensive solutions are often not worthwhile for SMEs. Scalable, affordable, and user-friendly solutions—both for customers and employees—are essential. Additionally, with over 1 million users, poinz provides an attractive and marketing-savvy target audience.

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Simple and proven: the poinz stamp card

Conclusion:

Customer retention is the key to sustainable growth. Businesses that focus on long-term customer relationships benefit from stable revenues, lower costs, and a stronger brand. While acquiring new customers is important, maintaining existing ones should be the priority to unlock a company's full potential. poinz provides the right tools to support you in making the most of its benefits.

If you have any questions, we’re happy to help.

Best regards from the poinz office,
Your poinz team