Membership model
It costs between 5 and 9 times less to retain an existing customer as compared to acquiring a new one. It’s also a lot less stressful than going “hunting” everyday.
When banks lend money to businesses they love seeing a stable and steady income stream. In some cases they prefer the steady income stream to a higher level of income that’s lumpy. Lumpy income represents higher risk.
There are many other reasons to chose a business model that favours customer retention over customer acquisition.
One of the best business models that lends itself to customer retention is the membership / subscription model.
We’re starting to see large corporates adopt this model increasingly. Have you considered it for your business?
