Customer acquisition & retention marketing stats

Put simply, customer acquisition refers to gaining new consumers. Acquiring new customers involves persuading consumers to purchase a company’s products and/or services.

Customer Acquisition Cost - Basically, the CAC can be calculated by simply dividing all the costs spent on acquiring more customers (marketing expenses) by the number of customers acquired in the period the money was spent. For example, if a company spent $100 on marketing in a year and acquired 100 customers in the same year, their CAC is $1.00.

Customer retention refers to the activities and actions companies and organizations take to reduce the number of customer defections. The goal of customer retention programs is to help companies retain as many customers as possible, often through customer loyalty and brand loyalty initiatives.

Acquiring a new customer can cost five times more than retaining an existing customer.
Increasing customer retention by 5% can increase profits from 25-95%.
The success rate of selling to a customer you already have is 60-70%, while the success rate of selling to a new customer is 5-20%.
One customer experience agency found loyal customers are 5x as likely to repurchase, 5x as likely to forgive, 4x as likely to refer, and 7x as likely to try a new offering.
U.S. companies lose $136.8 billion per year due to avoidable consumer switching.
American Express found 33% of customers will consider switching companies after just one instance of poor customer service.