06/09/2025
If you can keep 30%+ of your customers coming back, thatâs great. Loyal, repeat buyers are the backbone of any business.
But hereâs the thingâwhen I look at quarterly numbers, the metric I care about most is new customers.
Because if the percentage of new customers is growing faster than repeat customers, it means your marketing engine is pulling in fresh demand. Youâre expanding your reach, grabbing market share, and proving thereâs still room for growthâeven in a competitive space.
Now, unless your entire strategy is retention-heavy (like subscription businesses or consumables where repeat rate can hit 70%+), you should be tracking new vs. returning customers like a hawk.
Hereâs the breakdown:
⢠More new customers = proof of demand + proof you can still acquire market share.
⢠More returning customers = proof your offer and experience are strong enough to create loyalty.
⢠Both matter. But you need to decide which one drives your growth plan.
And donât forget the economics:
⢠Acquiring a new customer costs 5x more than keeping one you already have.
⢠A 5% increase in retention can boost profits 25â95%.
⢠Your odds of selling to an existing customer: 60â70%.
⢠Your odds with a new customer: maybe 20%.
So whatâs the move?
Set clear quarterly and annual targets:
⢠% of new customers you need.
⢠% of existing customers you want to keep.
Those two numbers dictate how you spend your ad dollars, how you design your campaigns, and ultimately, how fast your business grows.