There’s a persistent misconception that the only way to grow revenue is to acquire new customers.
New customers are great—and acquisition will always matter—but it’s not the only (or even the fastest) path to higher profits.
Focusing on customer retention is typically more viable, more predictable, and far more cost-effective.
It often costs five to seven times more to acquire a new customer than to keep one you already have.
And retention compounds. Research has long shown that improving retention by just 5% can lift profits by roughly 25–95%, depending on margins and purchase frequency.
So imagine the lift when you improve retention by 10% or 20%—you’re not just adding one more sale; you’re increasing lifetime value across your base.
None of this means you should ignore acquisition. But if you’re looking for ways to market on a budget, doubling down on existing customers delivers faster ROI.
Consider these loyalty stats from ecommerce: returning customers add to cart and convert at significantly higher rates than first-time visitors.
Customers with multiple purchases under their belt convert better, buy faster, and typically have higher average order values than new shoppers.
They also tend to generate many times more revenue per session than first-timers—another reason to keep them engaged.
Prioritize the customers who already trust you.
You’ve heard the proverb: “A bird in the hand is worth two in the bush.”
You’ve already earned these customers. Don’t risk losing them by putting all your energy into chasing the next lead.
Below are practical, modern ways to increase profits by improving retention.
Leverage your blog to establish loyal readers
Blogging isn’t just for traffic—it’s one of the simplest ways to keep customers coming back between purchases.
In addition to helping you attract new visitors and leads, consistent posts give existing customers a reason to return weekly for tips, product education, and inspiration.
Ask yourself:
How often does the same customer visit your website?
Most brands don’t get daily repeat purchases. But fresh content (how-tos, success stories, comparison guides, and best-use checklists) pulls customers back organically.
Publish on a reliable cadence. Tie posts to real customer questions, link to related products and help docs, and add clear CTAs for subscribing or saving the article.
Hook readers with helpful, skimmable content. If they use your products and read your blog, your brand stays top-of-mind when it’s time to buy again.
More visits ? more chances to cross-sell and re-sell. It’s one of the lowest-cost retention plays available.
The main investment is time and editorial focus. The average time to create a quality post has grown over the years, but the payoff in trust and lifetime value is worth it.
When you treat the blog like a customer program—not just an SEO tactic—you build loyal readers who become loyal buyers.
Use surveys and interviews to get feedback
To retain customers, you need to understand why they leave—and what would make them stay.
Surveys frequently find that most churn stems from customers feeling ignored or undervalued, not just from pricing or product gaps.
Only a subset churn due to product fit or price alone. The rest is experience.
What does that tell you?
How you listen and respond matters as much as what you sell.
Ask directly. You can use surveys and interviews to drive more revenue by uncovering friction and turning feedback into fixes.
Done right, this does two things: customers feel heard, and you spot the improvements that move the retention needle.
Run quick post-purchase surveys, NPS/CES check-ins, and churn interviews. Close the loop visibly—publish “you asked, we shipped” updates so customers see changes roll out.
As the experience improves, so does loyalty.
Service is part of the product—treat it that way.
Implement a customer loyalty program
The goal is simple: reward repeat behavior so customers choose you again.
Shoppers are more likely to buy from brands with clear, easy-to-use loyalty programs. Make earning and redeeming feel obvious and automatic.
Give customers what they want: points that add up, perks that feel meaningful, and benefits that get better over time.
Classic “visit-based” programs still work (the old punch-card), but digital versions are frictionless and track behavior automatically.
Mobile apps make this seamless—no physical card required, instant balance, personalized offers.
For online stores, track purchases through customer profiles so rewards apply wherever they shop.
Consider tiers. If two customers order ten times in six months but one spends $100 and the other $1,000, your best customer should unlock better perks.
Build spend-based levels, early access, birthday gifts, and VIP support. Keep the path to each tier transparent so customers see the next milestone.
You can launch a loyalty program that nudges higher frequency, bigger baskets, and longer relationships—all core retention levers.
When rewards feel fair and valuable, customers stick around and spend more.
Grow your email list
Email remains one of the highest-ROI retention channels for ecommerce and SaaS alike.
As the chart suggests, email often outperforms other channels at driving return visits and purchases.
Collect addresses at checkout, through content upgrades, and via account creation—ideally with clear value (first-order discount, early access, or useful downloadable guides).
Once subscribers opt in, send exclusive offers, replenishment reminders, and helpful tips—not just promos.
This keeps your brand present between buying cycles. Customers won’t make repeat purchases as frequently if you’re not showing up with timely, relevant messages.
Mind the cadence. A steady drumbeat beats a daily barrage that triggers unsubscribes.
Prioritize value in every send. Discounts work, but education and inspiration build long-term loyalty and higher lifetime value.
Incentivize customer referrals
Referral programs aren’t just for acquisition—they’re a retention engine when rewards encourage another purchase.
Yes, the goal is to bring in new customers. But your structure should also motivate existing customers to come back to redeem their reward.
Most people won’t refer friends without a nudge. Make the reward meaningful and simple to use.
They may love your brand, but a clear, easy incentive unlocks action.
Offer a double-sided reward (for the advocate and the friend). Here’s a classic example from Airbnb.
Refer a friend, and after their first booking, the advocate gets a travel credit.
That credit pulls the advocate back to make another purchase—repeat behavior by design.
Stack rewards for multiple referrals or milestones. The more they refer, the more credit they earn—and the more often they return.
Apply the same playbook to your store: simple sharing, transparent rewards, and credits that are easy to redeem at checkout.
Offer product suggestions
Encourage customers to create profiles so you can personalize their experience across sessions and devices.
Personalization improves relevance for shoppers and lifts revenue for brands.
With profiles, you can analyze browsing and purchase history to surface smarter recommendations.
Use that data to recommend products on product pages, in the cart, and through post-purchase and browse-abandon emails.
Shoppers are more likely to buy when suggestions align with their intent—particularly when tailored to recent behavior.
Nearly half of consumers report buying more from retailers that personalize recommendations and emails. Lean into that.
Example: if a customer adds soccer cleats and a ball to the cart, suggest shin guards, socks, a pump, and a water bottle before checkout.
Smart recommendations raise average order value and increase the odds of another visit.
Provide excellent customer service
Surveys and interviews are a start, but world-class service goes further.
Make service a company-wide standard. When the whole team is aligned on response times, empathy, and resolution ownership, retention follows.
From leadership to frontline reps, everyone should know what “great service” looks like in practice for your brand.
Improving the customer experience drives loyalty, lifetime value, and word-of-mouth.
Be easy to reach and faster than expected to resolve issues.
Offer as many support options as you can maintain with quality:
- phone
- live chat
Don’t limit help to 9–5 in one time zone if your customers span the country (or the globe).
If a West Coast customer needs help Friday at 6 PM local time, make sure there’s a path to support without waiting until Monday morning.
Proactive updates, a searchable help center, and fast first-contact resolution go a long way toward keeping customers happy.
According to studies, 86% of people say they’re willing to pay more for better service—proof that experience is a profit center, not just a cost.
Treat support as part of the product and customers will keep choosing you—even at a premium.
Segment your email list
Collecting subscribers is step one. Step two is segmentation so messages feel relevant to each person.
Group by lifecycle stage (new, active, at-risk), product interest, engagement, location, or purchase frequency.
You can even segment with generational marketing when it makes sense for your audience.
Segmentation unlocks personalization: targeted offers, timely reminders, and content that matches intent.
Here are some common benefits of segmentation that translate directly into revenue growth.
Bottom line: better targeting drives higher opens, clicks, conversion rates, and lifetime value.
Start simple, then refine. The more your emails feel tailor-made, the more customers return.
Develop a mobile app
Mobile is where customers live. A well-designed app can anchor your retention strategy.
It puts your brand on the home screen, enables one-tap reorders, and supports app-only perks and notifications.
Apps also unify loyalty, referrals, and surveys in one place—no plastic cards or clunky browser forms required.
And they improve service: in-app chat, order tracking, proactive shipment alerts, and easy returns reduce friction.
As far as retention, mobile apps have historically shown a higher likelihood of bringing customers back within 30 days compared to mobile web alone.
Apps also tend to have far lower cart abandonment than mobile browsers.
Historically, desktop cart abandonment hovered around ~68%, mobile web much higher, and apps dramatically lower—thanks to saved details and streamlined checkout.
Lower it further with simplified checkout, wallet payments, and clear progress indicators—see these high-ROI checkout tactics.
Conclusion
Growth isn’t only about new customers. It’s about earning the second, fifth, and tenth purchase.
Use your blog to bring customers back between purchases and answer their real questions.
Show customers they’re heard with surveys and interviews—and ship fixes fast. Launch a loyalty program that’s easy, fair, and rewarding.
Encourage referrals with double-sided rewards that create another reason to buy.
Grow your list and segment emails so every message feels relevant. Personalize product suggestions across pages and emails to raise AOV and repeat rate.
Invest in service that’s fast, empathetic, and easy to reach.
Build a mobile app to tie loyalty, support, and reorders together.
Make retention a habit, and profits follow.