What is a key advantage of focusing on customer retention for micro-enterprises?

Focusing on customer retention is often more cost-effective than acquiring new customers because existing customers have already developed a relationship with the business. They are familiar with the products or services offered and typically require less convincing to make additional purchases. Additionally, the costs associated with acquiring new customers—such as marketing, promotions, and outreach—can be significant. In contrast, retaining current customers often involves less expenditure since they are already engaged and loyal to the brand. This approach not only preserves existing revenue but can also lead to increased sales through repeat business and word-of-mouth referrals, making it a strategic focus for micro-enterprises looking to maintain a stable, cost-effective operation.