A few years back, WordStream CEO Ralph Folz was having his quarterly review meeting with our VP of Customer Success, Kristen Yerardi. What started off as a normal check-in turned into a huge wake-up call.
“When we looked at the amount of money we spent nurturing prospects to become customers, we were embarrassed that we didn’t spend the same amount, or even remotely close to the same amount, for our current customers,” said Kristen.
There’s really no definitive answer, but sources say that the cost of acquiring a new customer is up to 30 times that of keeping an existing one. And the good old 80/20 rule tells us that 20% of your customers bring you 80% of your revenue.