My Predictions For 2026: The Shift to Retention-First
My Predictions For 2026: The Shift to Retention-First
A massive shift is on the horizon.
By 2026, most companies will pivot their focus from customer acquisition to customer retention.
This transformation will redefine how businesses operate and compete in the marketplace.
The Saturation of Acquisition Strategies
For years, businesses have poured resources into lead generation and sales tactics.
The internet is full of free content on how to attract new customers, from SEO optimization to social media marketing.
These strategies are still important, yes. But they’ve become increasingly commoditized.
Nearly every company now has access to the same playbook for acquiring new customers.
💡A recent study by SimplicityDX reveals the increasing cost of customer acquisition: in 2013, e-commerce businesses paid an average of $9 to acquire a new customer.
But by 2024, this had risen to $29—a staggering 222% increase.
So, if everyone’s doing almost the same stuff, how are you going to differentiate yourself and stand out?
The Untapped Potential of Customer Retention
Companies explored all the ways to acquire new customers.
But there is one area they have to improve their playbook: customer retention.
And it’s a goldmine!
💡According to research from Bain & Company, a mere 5% improvement in customer retention can increase business profits by up to 75%.
This statistic shows the significant impact that even small improvements in retention can have on a company's bottom line.
Retaining existing customers is not only more cost-effective. It also leads to higher profitability.
Learn more about effective customer retention strategies.
Customer Success: The New Frontier
As businesses start to recognize the value of retention, customer success will AGAIN emerge as the true differentiator.
And it goes beyond traditional customer service.
💡Dimension Data reports that 84% of companies working to improve customer experience notice an uplift in revenue.
This proves the direct link between customer success initiatives and the financial performance of a company.
Discover what customer success really means and how it goes beyond traditional customer service.
Building the Retention Moat
Focusing on customer retention and success creates a powerful competitive advantage:
Deeper Customer Relationships
As they prioritize customer success, companies get deeper insights into their customers' needs and challenges.
Find out how to build stronger customer relationships.
Increased Customer Lifetime Value
Satisfied, successful customers are more likely to make repeat purchases and upgrade their services.
💡BIA Advisory Services found that repeat customers spend 67% more than new customers.
Organic Growth
Satisfied customers become brand advocates, driving word-of-mouth referrals.
💡Yotpo reports that 60% of loyal customers will share their favorite brand with friends and family.
Reduced Churn
A strong focus on customer success naturally leads to lower churn rates.
Predictable Revenue
Retained customers provide a stable, recurring revenue stream.
💡Smile. io reports that small e-commerce businesses generate 35% of their revenue from the top 5% of loyal, repeat customers.
Kirsten DiChiappari, VP of Customer Success at vCom Solutions, said it well in my exclusive interview:
"If you can create opportunities for a customer to grow revenue, you've got their attention. If you can solve a problem for them, saving them time or money, and if you can do it faster or better than they could themselves, you've got their attention."
The Road Ahead
Businesses that invest in customer retention and success strategies early on will have a significant competitive edge.
This shift demands new skills, technologies, and organizational structures focused on long-term customer relationships.
Emerging technologies set to transform customer retention include:
AI-Powered Personalization
Enabling hyper-personalized experiences at scale.
Explore more about AI's impact on customer success.
Advanced Customer Analytics
Providing deeper insights and predictive capabilities.
IoT Integration
Offering real-time data on product interactions.
Voice and Natural Language Processing
Adapting to voice-based interactions.
Blockchain for Customer Loyalty
Transforming loyalty programs.
Companies that embrace these technologies and focus on long-term customer relationships will build a true moat, sustaining growth and profitability.
The future belongs to those who can turn customers into long-term, successful partners.
💡To help you get started, I've created a comprehensive 150-page Customer Success Templates Collection. It's an all-in-one resource packed with everything you need, from customer onboarding to renewal planning. Stop wasting your time creating templates from scratch. Join 50+ satisfied customers and bookmark it out today!
And as Melissa Garcia, Director of Renewal Operations at Chief, adds in our interview:
"Customers are primarily interested in their own KPIs, not ours. Understanding this starts with attentive listening, asking pertinent questions, and then articulating how our offering aligns with their goals."
And That’s It
Customer acquisition will always play a key role in business growth.
But the true differentiator and moat by 2026 will be a company's ability to retain and nurture its existing customer base.
As Christine Lavery, VP of Customer Success at AgentSync, said it well in our interview:
"If you see CS as an expense, you might reflexively cut back, despite seemingly obvious repercussions. If you recognize that as the owners of retention, Customer Success protects (generates) more revenue per year than any other department, you'll likely invest in the right amount of the right people."
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How companies are shifting to outcome-based customer success
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How products themselves are becoming smarter at helping customers
These insights will help you stay ahead and build stronger, more profitable customer relationships and growth for the business.
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1. Outcome-Based Customer Success
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