Why is retaining customers so important in sales and marketing?

Retaining customers is essential in business because it costs more to get a new customer than it does to keep an old one. It also helps for you to know the needs of the customer. Loyal customers provide a boost in sales because they tend to spend more than new customers. There is a level of trust involved. Repeat customers also tend to but a broader range of products and service packages.

This is because they are already familiar with the products, which means they are likely to gravitate to other products you are selling. Also, retaining a loyal customer base is proof that you deliver exceptional customer service experience. This helps build a reputation, and it gives the customer the incentive to refer other people to your services.