The Importance of Acquiring New and Retaining Existing Customers

Businesses need to continually acquire new customers and work towards retaining existing ones. But, if push comes to shove, and a business can manage to do only one of these, which one should be picked? In this post, let’s examine the significance of acquiring new customers and retaining existing ones, and the role of a Web-Based Loyalty Solution in these processes. 


Retaining Customers Ensures Steady Business

Existing customers can contribute up to 80% of a business’ revenues. Customers who are well-aware of your products are much more likely to purchase them if incentivised appropriately. What’s more, ensuring that an existing customer returns again is cheaper than acquiring a new customer. Simply put, customer retention is key to ensuring a steady flow of revenue and giving a business stability and predictability. It needs to be a focus for both, new and old, businesses alike. 


Acquiring Customers Fuels Expansion

Once the retention strategies are effectively able to ensure repeat customer engagement and extend customer lifetime value, stepping in the market to win customers from competitors and increase the market share is an important constituent of business expansion. Acquisition of new customers is usually a resource-intensive process as it requires investment in marketing and promotions. But, if done right, it can accelerate growth by bolstering brand awareness and recognition.


Retention Needs to Follow Acquisition 

Investing time, effort, and resources to get new customers to notice your business and then failing to retain them is a recipe for disaster. In addition to offering a top-quality product/service, you need to effectively engage new customers by enrolling them in a Web-Based Loyalty Solution and encourage them to do business with you again. Thus, acquisition of new customers needs to be followed by a robust strategy to retain them as well.



Depending on where your business is currently at, you might be focusing solely on retention or acquisition, or splitting your resources between them. However, they usually appear in tandem with each other and are indispensable to a healthy, sustainable, and scalable business. Loyera is a free and hardware-independent Web-Based Loyalty Solution that can help you gain new customers and retain existing ones. Get in touch to know how your business can benefit from Loyera.


Location: United States

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