In today's challenging economic landscape, businesses are under tremendous pressure to cut costs and maximize their return on investment (ROI). With the recent downturn, companies have scaled back marketing and product expenditures. However, a paradigm shift is underway, highlighting customer retention and engagement as crucial strategies to navigate uncertain times.
Today, the average brand spends 222 percent more to acquire a single customer than a decade earlier, yet most apps have a 10-day retention rate of less than 10 percent. Although most companies spend more on user acquisition than retention, loyal customers cost less to serve, spend more with companies they trust, and are less likely to make a switch during a downturn. Learn how successful apps have increased their user lifetime value (LTV) to CAC ratio in uncertain economic times by focusing on user retention, loyalty, and engagement alongside acquisition.