It costs a lot to get a new customer. Business from a repeat customer is much less costly. The answer to keeping customers is to understand the Life Time Value (LTV) concept.
LTV is the amount of business generated in a “life time” of a business-customer relationship.
A former insurance executive reminded me of LTV….one of the fundamental principles of insurance is to always maintain contact with the client/customer….whether through birthday/Christmas cards or interacting at a civic or recreational event.
While we had a mail list….maintaining contact was not a priority….looking back that is something we should have done better. The One-on-One Customer experience and LTV was greatly expanded on by Don Peppers-Martha Rogers in their first book – The One to One Future (1996)….long after we left the business.