Acquisition vs Retention Spend: Finding the Right Balance for Your Growth Stage
Most SMBs default to spending the majority of their marketing budget on acquisition. Research consistently shows that increasing customer retention by 5% typically increases profits by 25-95%. The right balance depends on your growth stage, your current churn rate, and whether your retention base is large enough to fund meaningful word-of-mouth growth.
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- Most SMBs default to spending the majority of their marketing budget on acquisition.
- Research consistently shows that increasing customer retention by 5% typically increases profits by 25-95%.
- The right balance depends on your growth stage, your current churn rate, and whether your retention base is large enough to fund meaningful word-of-mouth growth.
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