Building a Customer Retention Strategy
Most CPG founders are so focused on acquiring new customers that they don’t spend enough time and energy retaining their existing ones. According to Neil Patel, “The probability of selling to an existing customer is 60-80%, while the probability of selling to a new prospect is 5-20%.” On top of this, customer acquisition costs for new customers are much higher than for existing customers.
Are you building your strategy around retention first and acquisition second? If not, you should be as it’s the foundation to building a successful business.
Let’s break down what a retention first strategy looks like and how to build one for your business.
First, let’s look at a traditional marketing funnel.

Ideally, each potential customer moves from awareness down to advocacy. Now it’s called a funnel because at each stage you’ll have fewer and fewer people moving to the next step. Sometimes it’s because the product isn’t a fit, while other times people are simply busy and forget. As a company, your goal is to:
1) Build as many advocates and loyalists as possible, and
2) Increase the number of people moving from one stage to the next without exiting the funnel
Why? Advocates and loyalists …