WHY RETAINING MORE CUSTOMERS MIGHT BE HURTING YOUR GROWTH

Summary from the TLDR Marketing newsletter

In a recent ecommerce study, brands with higher retention but declining spend per customer saw revenue drops, while those with lower retention but increased spend among retained customers experienced up to 130 percent growth. The strongest performance came from brands that focused on building emotional connection through customer service, which was found to be the top driver of increased spend, outperforming loyalty programs and advertising in long-term impact.