{"id":4119402,"date":"2022-11-23T10:42:38","date_gmt":"2022-11-23T08:42:38","guid":{"rendered":"https:\/\/www.deptagency.com\/?post_type=article&p=4119402"},"modified":"2025-11-27T10:30:40","modified_gmt":"2025-11-27T08:30:40","slug":"how-to-reap-the-rewards-of-loyalty-retention","status":"publish","type":"article","link":"https:\/\/www.deptagency.com\/en-dk\/insight\/how-to-reap-the-rewards-of-loyalty-retention\/","title":{"rendered":"How to reap the rewards of loyalty & retention"},"content":{"rendered":"
\n\t\n\t<\/svg>\n\t\t\t\n\t\t\tBack to all articles\t\t<\/span>\n\t\n<\/a>\n\t\tHow to reap the rewards of loyalty & retention\t<\/h1>\n\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t<\/picture>\n\t\n\t<\/div>
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\n\t\tWillem Blom\t\t
\n\t\tImpact investor & Global SVP Growth – DEPT\u00ae \n\t\t\t<\/div>\n<\/div>\n\t
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\n\t\t\t\t\t23 November 2022\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t\t<\/div>\n<\/div>\n\n
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\n\t\tIn times of economic instability, battening down the hatches and tightening the purse strings is the natural response to keep your bottom line healthy. And while making considered decisions around media budgets is wise, a switch in focus from new customer acquisition to loyalty and retention is even wiser.

According to Harvard Business Review<\/a>, acquiring a new customer is \u201canywhere from 5 to 25 times more expensive than retaining an existing one\u201d. For some organisations, this is a budget-breaker, especially those with long sales cycles or expensive products. But while acquisition can multiply your spend five-fold, an HBS study<\/a> shows just a 5% increase in retention rate can increase profits by 25% to an astonishing 95%.

But it takes more than just a switch in mindset to harvest the fruits of retention. And while some organisations may have laid the foundations back in the dark days of the pandemic, many marketing teams are underprepared from a technical, talent and strategy perspective to compensate for the loss of media exposure and traffic when switching to a retention and loyalty strategy.

Developments in martech, data modelling and personalisation capabilities mean that loyalty and retention strategies have come a long way from simply firing off a discount code to all previous buyers; it\u2019s about getting to know your customers, understanding their needs, and providing the service they need, when they need it. But we understand that knowing where to start when budgets are shrinking and timelines are tight can be tough, so we\u2019ve broken down some key focus areas to support you with your loyalty and retention strategy.\t<\/p><\/div><\/div>\n\t\t\t<\/div>\n\t\t\t<\/div>\n\n\t\n\t