Small business owners now spend the majority of their marketing budgets, time, and efforts on retaining and developing relationships with existing customers. They spend less than half of their money or time on new customer acquisition.
The findings of a study released today by Manta and BIA/Kelsey, which surveyed nearly 1,000 small business owners, are in stark contrast to previous studies the organizations conducted. Just two years ago, a BIA/Kelsey study found that small business owners’ primary focus was on new customer acquisition; in fact, they spent 7 times more on acquiring customers than on retaining existing ones.
The same 2012 study found that only 6 percent of small businesses were spending more than half of their budgets on keeping customers. And yet more than 61 percent of respondents to the 2014 survey claim they generate more than half of their annual revenue from repeat customers rather than new customers.
The co-authors of the new report, “Achieving Big CustomerRead More »from Customer Loyalty Programs Slowly Gain Traction