The Harvard Business Review found that a 5% increase in customer retention can increase profits by as much as 25% to 95%. The math is fairly straightforward: it costs less to maintain the loyalty of an existing customer than it does to acquire a new one, and a loyal customer is likely to make repeat purchases, making their lifetime value quite lucrative.

With that in mind, the bigger revenue opportunity lies in having a thriving new business engine that pumps alongside a robust retention system. The new business engine continues to bring in new customers, and as long as the retention strategy is effective, that total number of loyal customers will continue to grow. Most business owners understand this truth intuitively, but separating new customer acquisition from customer retention misses a key opportunity.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.


  • All news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including and

Already have an account?

Dig Deeper



Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join now!

  • Unlimited access to - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including, and
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2023 ALM Global, LLC. All Rights Reserved.