Customer Acquisition vs Retention Cost – Statistics & Trend

Striking a balance between acquiring and retaining customers is crucial in business. The cost of acquiring a new customer can be 5-25 times more than the expense involved in retaining an existing one. 

Interestingly, it’s the existing customers who generate 65% of a company’s revenue, contributing significantly more than new customers, who bring in 35%. It is important to observe, with evolving business trends, how this dynamic plays a role in companies’ strategies and outcomes. 

In light of this, let me share the most crucial customer acquisition vs. retention cost statistics and trends you should be aware of right away. Also, some customer acquisition statistics and facts are important to note. 📊🔍💡

Customer Acquisition vs Retention Costs: The Key Data

• Acquiring a new customer can cost 5-25 times more than retaining an existing customer.
• Companies have a 60-70% chance of selling to an existing customer versus a 5-20% chance of selling to a new customer. 
• 44% of businesses prioritize customer acquisition, while only 18% prioritize customer retention.
• Existing customers are 50% more likely to try your new product and 31% more likely to spend more on their average order value than new customers.
• Existing customers generate 65% of a company’s revenue, while new customers generate 35%. 
• Increasing customer retention by 5% can result in a 25-95% increase in profits.
• AI can potentially lower client acquisition costs by up to 50%.
• According to new research, customer acquisition costs have increased by 222%.
• Brands are losing a record $29 for each new customer they acquire.
• The average customer acquisition cost for B2B companies is $536.

Sources: (HBR, Groove HQ, Linkedin, Trust Biz Journals, IBM, Simplicity DX, Business Wire, User Pilot.)