Getting customers is cheap compared to keeping them. As acquisition costs rise, chasing one-time sales kills long-term growth. Focus on customer lifetime value, retention rates, and loyalty instead of conversion metrics.
Chapters
As well as an attention economy, we're also in a retention economy. Customer retention is the name of the game. As customer acquisition costs continue to climb, we need to keep those customers for longer. Chasing quick wins for that revenue spike dopamine fix, while ignoring things like customer lifetime value, community, and customer relationship building, is becoming an increasingly unsustainable business model. Strong retention and deeper customer relationships are becoming two key foundations to building growth today. But for businesses to prosper in this new actuality, we need a change in thinking. Focusing on conversion rates above all else is becoming a flawed premise. Instead, we need to factor in the entire customer experience and think about metrics such as customer lifetime value, retention, loyalty, purchasing cadence, and pipeline revenue prediction.