The ROI of staying power: Why retention is the key to growth in 2026  

If there’s one phrase that captures the national mood right now, it’s ‘feeling the pinch’. 

Cost of living. Cost of labour. Everywhere you look, headlines are spelling out the same story: things are expensive. 

For marketing teams, this means the pressure is on. We need to convince cautious customers to spend with us. And we need to do it with a budget that’s as tight as theirs. 

And this is precisely where retention marketing proves its worth.

Retaining customers costs less – and delivers more – than acquiring new ones. In this piece, we explore how a strong retention strategy may be your smartest investment in 2026.

The hidden cost of chasing new customers 

For many marketing teams, customer acquisition is the go-to growth strategy. 

Finding fresh leads. Converting new customers. Expanding the base. They’re all worthy goals. But in today’s market, they’re becoming increasingly costly and hard to sustain. 

As media platforms get more crowded and digital ad prices continue to climb, customer acquisition costs (CAC) have skyrocketed. 

Acquisition has always been a high-stakes game. In 2013, the average cost of acquisition was $9 per customer. By 2021, that figure had jumped to $29 – a 222% increase in 8 years.

But marketers today aren’t just battling rising costs. They’re also losing sight of their target customers. 

Privacy reforms, from Apple’s App Tracking Transparency to the phase-out of third-party cookies, have made it harder to reach the right audiences at the right time. And reduced targeting precision has turned what was once a reliable engine of growth into a far riskier, more expensive play.

In short, we have a CAC crisis on our hands.

And when dealing with a crisis of affordability, it pays to focus less on what you want and more on what you’ve already got. 

Which is where retention marketing comes in. 

Why retention is the unsung hero of growth 

While acquisition is all about bringing in new customers, retention is encouraging existing ones to come back. It’s turning one-time buyers into brand loyalists and building a mutually beneficial relationship that lasts.

And it’s worth your time – for dozens of reasons. 

A strong retention strategy can stabilise revenue, increase customer lifetime value and boost your brand’s reputation.

According to recent data, loyal customers spend 31% more than new customers. And it makes sense. They’re already familiar with your product and, therefore, more open to repurchasing, upselling and brand engagement efforts. 

They’re also more likely to recommend your brand to others, which can increase your reach and indirectly bring in new buyers. 

Even better? The benefits come with a significantly lower price tag. Research suggests that acquiring a new customer can cost 5 to 25 times more than retaining an existing one.

If acquisition is the race car, retention is the hybrid: quieter, cheaper and built for the long run.

Retention tactics for your marketing plan   

So, how exactly do you keep customers coming back?

It starts with shifting your focus from campaigns to relationships. 

You won’t build loyalty with a single post-purchase email. You need to understand the full customer journey and show up with relevant, timely messages at every step.
 

Try these 6 strategies to get started. 

1.    Set the tone with smooth onboarding 

First impressions count. A clunky or confusing start can lose customers fast. Whether someone’s signing up for your service, subscribing to your newsletter or making their first purchase, that initial interaction should be seamless and straightforward.

So test every step to ensure the experience is intuitive and glitch-free.

A well-crafted welcome email or timely check-in (‘Need help getting started?’) can go a long way in removing friction and building confidence early. 

The easier the process – and the quicker they see value – the more likely a customer is to stick around.

2.    Invest in proactive personalisation

Use your CRM or CDP data to anticipate customer needs and offer relevant content, offers or support at just the right time.

If someone frequently shops a certain category, send them tailored product picks or early access to new arrivals. Or, if a customer hasn’t engaged in a while, trigger a personalised win-back email with a discount to re-engage.

The more relevant your content, the more connected your customers will feel to your brand. 

3.    Create feedback loops

Show customers you’re listening by regularly asking for their input.

Tools like Net Promoter Score (NPS) surveys (which ask how likely someone is to recommend your brand), along with post-purchase surveys or quick in-app polls, can reveal what’s working and what’s not. 

And when you’ve got that feedback? Let customers know you’ve acted on it. 

Whether it’s a product tweak, an improved process or a new feature, a simple ‘you said, we did’ moment can turn passive buyers into loyal brand advocates.

4.    Celebrate milestones

Moments that matter to your customer should matter to you.

Whether it’s a birthday, an anniversary or their 10th order, acknowledging milestones shows you value the relationship – not just the transaction.

A thoughtful message, exclusive offer or small surprise can build emotional connection and keep your brand top of mind.

5.    Reward loyalty 

Loyalty programs work when they’re genuinely rewarding. So make it easy for customers to understand how to earn and redeem rewards.

Whether it’s points, perks, free shipping or early access, the benefits should feel worthwhile and achievable, not frustratingly hard to reach or buried in fine print. 

6.    Make leaving easy – and rejoining even easier

Sometimes customers take a break. And that’s okay. What matters is how easy you make it for them to leave on good terms and return when they’re ready.

Avoid punishing cancellation processes or guilt-tripping emails. A smooth offboarding experience increases the chance they’ll come back – and think positively about your brand in the meantime.

Small shifts, big returns

Most of these tactics cost less than a typical paid campaign – and deliver far more in lifetime value and brand equity.

Start small, stay consistent and focus on delivering value. The long-term results will speak for themselves.  

Ready to turn buyers into believers? Discover the tools and tactics behind effective retention with ADMA’s Retention Marketing Strategy course.