While a customer cannot be retained until they have been acquired, it is
important to note that the probability of selling to an existing customer is
around 60-70% as opposed to a new customer, which weighs in at a mere 5-20%. Retained
customers not only buy more, more often, but are also 50% more likely to try
new products from a company that they have previously purchased from, offering
an easy to reach platform for trial.
interesting phenomenon is that the longer a customer has been shopping with a
retailer, the higher the spend by the customer – it is evident that repeat
customers have a high lifetime value, which contributes to a higher value per
order over time. In addition to this, these loyal customers increase spend by around
25% more per purchase over peak periods, vs the first-time shopper, who will
only purchase around 17% more during the silly season.