It's all about the LTV

Statistics to support strategic shift from acquisition to adherence to increase life time value (LTV):

• Acquiring new customers can cost five times more than retaining (and satisfying) current customers
• A 2% increase in customer retention has the same effect on profits as cutting costs by 10%
• The average company loses 10% of its customers each year (Pharma loses up to 50%)
• A 5% reduction in customer defection rate can increase profits by 25-125%, depending on the industry
• The customer profitability rate tends to increase over the life of a retained customer

Source: “Leading on the Edge of Chaos”, Emmett C. Murphy and Mark A. Murphy