The Growth Of A New Business

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3 Growth Metrics You Can’t Ignore Any Longer

It’s that time of year when companies spend time reflecting on the end of one year and begin making goals for the next. And there’s one goal that we’re willing to bet is likely at the top of nearly everyone’s list: growth.

However, if you’re like most companies, your strategy for improved growth in 2016 is probably largely focused on customer acquisition. While bringing in more new business is never a bad thing, acquiring new customers is only one part of the total growth equation.

In fact, there are several opportunities that can lead to continued growth after a customer makes his or her initial purchase. According to Marketing Metrics, the probability of converting an existing customer is between 60 and 70 percent—which is considerably higher than the five to 20 percent estimated probability of converting a new customer.

Plus, existing customers are more likely to spend more in repeat transactions as your company earns their trust. Just how much more? Well, research from Laura Lake estimates that repeat customers spend an average of 33 percent more than new customers.

By incorporating customer retention strategies into your overall growth strategy, your business can enjoy growth that is not only higher, but also accumulates faster. So, how can your business capitalize on growth from your existing customer base in the new year?

The answer involves shifting your focus to after a prospect becomes a customer. By tracking
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