Most businesses usually focus on acquiring new customers, but what about keeping the ones you already have? It is more cost-effective and profitable to keep your current customers than to find new ones, according to Gartner research (full report available to clients). Nonetheless, 67% of B2B marketers focus primarily on acquisition and often overlook retention.
The key to sustainable growth is to focus on both acquisition and retention. B2B software providers, seeking to grow their product or service by bringing in new consumers as well as retaining the current ones, often find themselves in a dilemma regarding which growth strategy to choose for their offerings.
Growth loops and the acquisition, activation, retention, referral, and revenue (AARRR) funnel are today’s most popular growth models among marketers. But which one is better — the AARRR funnel, which primarily focuses on acquisition? Or the growth loop, which emphasizes both acquisition and retention?
In this article, we explain growth loops vs. AARRR funnels to offer insights into why these models matter for your B2B software marketing and sales strategy.