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Revenue Impact: The Pareto Principle when applied to marketing, states that 20% of repeat customers are responsible for 80% of the sales; and this is true for most businesses. Thus, even a slight increase in the percentage of repeat customers will lead to an exponential growth in revenues. Profitability Impact: Harvard Business Review estimates that just a 5% increase in customer retention boosts profitability by 50%. Again, a minor increase in the customer retention can yield a dramatic increase in the profitability. Acquisition Costs vs. Retention Costs: As per reports, acquiring new customers is 7x more expensive than retaining these same customers; and the AOV increases with each incremental repeat purchase. In short, loyal customers help increase revenues & profitability, thus making it a very leveraged investment. Increasing your customer base is important but a company’s primary focus should always be on retaining the loyalty of existing customers.