New research has been released which showing a significant relationship between customer retention and market share.
The supermarket share wars are increasing in intensity, as supermarkets lower prices weekly to try and claw back customers from Aldi, Lidl and Amazon.
A new study from Forbes and Sailthru looks to have found the key ingredient to success.
According to the research, companies who direct their revenue towards retention rather than acquisition of customers, are three times more likely to have an increased market share.
Continuing this trend, it has found that those who focus on retention are 36 per cent less likely to see increased customer attrition rates.
Companies who prioritise retention are also better at acquisition, then companies who focus on acquisition are at retention.
“Too often, executives and marketers focus their efforts on short-term growth and we‘re seeing the impact of that in retail and media company earnings reports,” Sailthru chief executive Neil Lustig said.
“There are many studies that document the potential of retention, but none that dive into how well retail and media companies understand the economics of retention.