We invest a lot of time and money in acquiring new customers. It is also part of the natural flow for customers to eventually become dormant. As this happens, our sales team turns its attention toward finding new customers. However, this is not usually the most profitable approach. We are leaving money on the table when we forget about or neglect our large, dormant client base.
It can cost up to five times more to acquire a new customer than to keep an existing one, and existing customers are 50% more likely to try new products. It makes financial sense to dedicate a percentage of resources, and perhaps even have dedicated personnel, toward maintaining and/or reactivating existing customers.
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