Getting new customers feels great, doesn't it? It’s a rush.
But what happens after that initial sale? Do you have a plan, or are you just hoping they’ll come back? As Adam Ortman, founder of Kinetic319, shared on the Business Mastery Podcast, “Acquisition is incredibly important… but it’s also about that experience for the customer when they are trying to work with you.”
TL:DR: Your work isn't done once a customer makes a purchase. That’s just the beginning. To build a business that lasts, you need to think about the entire customer journey, from that first click all the way to creating a loyal fan who sticks with you for years.
It's time to map out the full experience and turn one-time buyers into lifelong partners.
This blog is based on a recent podcast conversation our founder, Adam Ortman, had with Dawn Kennedy on the Business Mastery Podcast. Listen to the full podcast here, and check out our continued thoughts below.
The Overemphasis on Acquisition
It’s easy to get tunnel vision when it comes to growth. Many businesses pour all their energy and budget into chasing new leads. The logic seems simple enough.
As Adam puts it, “It’s the easy play. It’s the easy thought. I get more customers, I get more sales.” You get caught up in the thrill of the chase, thinking that a bigger customer base automatically means more money in the bank.
But this approach has a hidden cost. Focusing only on acquisition means you're often neglecting the goldmine you're already sitting on: your existing customers.
Meanwhile, the price of getting new people in the door is climbing. Advertising costs are getting "wildly more expensive year over year," and in some competitive fields, the numbers are just staggering.
Adam shared an example of an attorney client where "one click on an ad is $512 because of how competitive that specific keyword is." That’s over $500 for a single website visit, not even a guaranteed client. When acquisition costs are that high, you can't afford to let those hard-won customers slip away.
The Value of Lifetime Customer Relationships
Instead of just chasing the next sale, what if you focused on the total value a customer brings to your business over their entire relationship with you? This is the core idea behind Lifetime Value, or LTV.
It’s a shift in perspective from a short-term transaction to a long-term partnership. Adam frames the essential question you should be asking: “How do you re-engage those individuals through their lifetime? How do you really start focusing on an LTV or a lifetime value of a customer?”
When you look at the numbers, it becomes clear: retaining customers is almost always more cost-effective than acquiring new ones. Indeed, studies show that acquiring a new customer can cost five times more than retaining an existing one.
Think about it. You’ve already done the hard work of earning their trust and getting them to make that first purchase. Now, you can communicate with them through channels like email or SMS without paying for another expensive ad click. Keeping them happy and engaged "is a lot cheaper than going on finding new customers."
There’s also the 80/20 rule to consider. You've probably heard it before, and it often holds true in business: “The top 20% of your customers are generating 80% of your business.” These top customers are your most valuable asset. They are the ones you should focus on serving exceptionally well, because keeping them loyal is the key to sustainable growth.
The Art and Science of Customer Retention
So, how do you keep your customers coming back? It's a mix of art and science. The science is in the data, and the art is in the human connection. One of the most powerful and straightforward ways to get started is to simply talk to your customers.
Adam’s advice is direct: “Survey your clients. Reach out to them and just ask them questions about their priorities and motivations.”
Your customers want to feel heard. Giving them a voice shows that you value their opinion, which builds loyalty. You can ask for feedback on your products, inquire about new services they might want, or even involve them in business decisions.
For example, Adam worked with a client who was updating their branding. They asked their top 20% of customers to weigh in on the new designs. The result? Customers felt involved and respected, creating a powerful connection to the brand.
Another key strategy is segmentation. Not all customers are the same, so your approach shouldn't be one-size-fits-all, either. You can “segment your customers… based on their buying cycles or loyalty data.” Do some customers buy from you every month, while others only purchase once a year? By grouping them, you can tailor your communication and offers to be more relevant and effective.
Finally, consider implementing loyalty or referral programs. These programs incentivize repeat business and encourage your happy customers to spread the word.
A simple offer like, “If you bring in a new customer, you get X percent off your next purchase,” can be incredibly effective. Don't be shy about asking for referrals. If you've provided a great experience, your customers are often happy to help, but you have to ask.
Tools and Strategies for Success
To do all this effectively, you need to be organized. Flying blind with customer data scattered across spreadsheets and sticky notes just won’t cut it.
Step one is to organize your customer data, potentially use a tool like HubSpot or Salesforce. These platforms are called Customer Relationship Management (CRM) systems, and they act as a central hub for all your customer information. A good CRM allows you to see everything in one place, from contact details to purchase history, which makes slicing and dicing your data a breeze.
Once your data is organized, you can start tracking the right metrics. It's not just about front-end numbers like cost per acquisition or website conversion rates. You need to dig deeper into metrics like lifetime value and repeat purchase rates. Even simple indicators matter; "the time on site is a great index of genuine interest," according to Adam. Taken together, these numbers tell the real story of customer engagement.
You also need to choose the right communication channels. With the average person in the US receiving 121 emails a day, just sending a newsletter might not be enough. You need to “email them, SMS, text message them if that’s appropriate. But also make it valuable to them.”
Your communication should never be an empty gesture. It must provide real value, whether it's useful information, an exclusive offer, or a simple thank you.
Creative Approaches to Retention
Sometimes, the most powerful retention strategies are the ones that add value in unexpected ways. Think beyond the initial transaction.
Adam shared a brilliant example of a caterer who found a creative way to stay connected with their wedding clients. They offer a service where they “make a small version of your wedding cake for your anniversary every year.” It’s a thoughtful, personal touch that keeps the business top-of-mind and transforms a one-time event into an ongoing relationship.
Personalized engagement is also key. Don’t just guess where your customers are. Ask them.
“Ask your customers where they’re spending time online… and fine-tune your targeting,” Adam explained. This helps you meet them where they are and communicate in a way that feels natural, not intrusive.
Most importantly, don't be afraid to experiment. Retention isn't a set-it-and-forget-it process. It requires continuous testing and adaptation. If you have an idea for a new service or loyalty program, roll something out, test it, and if it doesn’t work, pull it back. There’s no failure in trying something new. It’s all part of the learning process of figuring out what works best for your business and your customers.
Practical Steps to Get Started
Feeling overwhelmed? Don’t be. You can start making meaningful progress with a few focused steps. Here’s a simple roadmap to get you going:
-
Organize Your Data: Get your customer information into a CRM. Even a free tool can make a huge difference in helping you see the big picture.
-
Segment Your Customers: Start grouping your customers. You can define your segments by spend, how long they’ve been a customer, or even their location. Start with your top 20%.
-
Create a Survey: Use a free tool like Google Forms or Microsoft Forms to build a simple survey. Ask a few key questions about their priorities and satisfaction. Incentivizing it with a small gift card can boost response rates.
-
Launch a Loyalty Program: Start simple. Offer a discount for referrals or create a punch card for repeat purchases. Just get something in place to reward your loyal customers.
-
Test and Refine: Don't expect perfection on day one. “Soft launch it, see how it goes, and then lean into it if it makes sense,” as Adam suggested. Continuously monitor your results and adjust your strategies as you learn.
Your Customers Are Your Greatest Asset
Building a successful business is a marathon, not a sprint. While getting new customers is exciting, the real, sustainable growth comes from nurturing the relationships you already have. By mapping the full customer journey and focusing on retention, you create a loyal base of advocates who will support your business for years to come.
Take a look at your business today. Are you giving your existing customers the attention they deserve? If not, it’s time to make a change.
As podcast host Dawn Kennedy reminds us, “Don’t ignore your current customers. Keep moving.”
Ready to get your own wheels in motion? Listen to Adam Ortman’s episode on the Business Mastery podcast, and contact Kinetic319 to learn more about how we can help you keep customers around for the long haul.