Retaining Existing Customers vs. Acquiring New Ones in a Recession
In a downturn, retaining the customers I already have becomes my number one priority. Let's talk about it.
Jenny Holly Hansen
By Jenny Holly Hansen | WBN News | May 7, 2025
Every time a recession hits, I find myself thinking differently about growth. It’s not that new customers aren’t important — they always are — but in a downturn, retaining the customers I already have becomes my number one priority.
It’s a shift in mindset from expansion to stabilization. From chasing to cherishing.
When every dollar is harder to earn, investing in loyalty often delivers a much higher return than pouring more resources into acquisition.
Why Retention Beats Acquisition in a Recession
1. It’s More Cost-Effective
Research shows it costs five to seven times more to acquire a new customer than to retain an existing one. During a recession, when budgets are tight and uncertainty is high, maximizing the value of the relationships I already have simply makes better business sense.
2. Existing Customers Already Trust You
Building trust takes time. My current customers already know who I am, what I offer, and why they chose me. In tough times, familiarity and trust carry even more weight. People are less willing to take risks on unknown vendors or brands when money is tight.
3. Loyal Customers Spend More
Over time, loyal customers typically buy more, purchase more often, and are more open to additional products or services. In a recession, I focus on deepening those relationships — offering more value, solving more problems — because it’s more efficient than starting cold with new prospects.
4. They Become Advocates
Happy existing customers are my best marketers — and their referrals often convert better than any ad or cold outreach ever could. Word-of-mouth and trusted recommendations carry even more influence when people are cautious with their spending.
How I Prioritize Retention
During a recession, I double down on retention strategies:
- Proactive Communication
I don’t wait for customers to reach out with concerns — I reach out first. Check-ins, updates, value-add information. Staying visible reminds them I care about their success, not just their wallet. - Enhanced Customer Service
Every touchpoint becomes an opportunity to impress. Quick responses, problem-solving attitudes, genuine empathy — it all matters even more when people are stressed. - Flexible Solutions
I offer flexible payment plans, loyalty rewards, or scaled-down service options if needed. It’s better to keep a customer engaged — even at a lower level — than to lose them entirely. - Exclusive Offers and Upgrades
Rewarding loyalty with exclusive offers or priority access keeps existing customers feeling valued — and reminds them why they chose me in the first place. - Listening Closely
I regularly ask for feedback and act on it. Showing that I’m willing to adapt and improve based on their input builds stronger emotional connections.
But What About New Customers?
Of course, I don't abandon acquisition entirely. New customers are still important for long-term growth. But during a recession, I shift my approach:
- I target much more selectively — focusing on markets or audiences most likely to need what I offer now.
- I lean heavily on referrals and testimonials rather than broad advertising.
- I position my offering around stability, value, and trustworthiness — the qualities that matter most during uncertain times.
Acquisition doesn't stop. It just becomes smarter, slower, and more intentional.
Final Thoughts
In a recession, it’s tempting to think "we just need more customers." But I've seen how the real strength often lies in nurturing the relationships I've already built.
Retention isn’t just about keeping customers. It's about earning deeper loyalty, growing smarter, and building a foundation that will carry the business forward — through the downturn and beyond.
Because at the end of the day, it’s not just about surviving. It’s about who you have standing with you when better days return.
Let’s Keep Talking:
Jenny is a business insurance broker with Waypoint Insurance.
She is also a business development consultant with Impresario Partners, helping Canadian Business expand overseas.
She can be reached at 604-317-6755 or jholly-hansen@wbnn.news. Connect with Jenny on LinkedIn at https://www.linkedin.com/in/jenny-holly-hansen-365b691b/. Connect with Jenny at BlueSky: https://bsky.app/profile/jennyhollyhansen.bsky.social
Let’s Meet Up:
Jenny Holly Hansen is a cohost with Chris Sturges of the Langley Impact Networking Group. You are welcome to join us on Thursday’s from 4pm to 6pm at: Sidebar Bar and Grill: 100b - 20018 83A Avenue, Langley, BC V2Y 3R4
TAGS: #Jenny Holly Hansen #Recession-Proof #Retaining Clients #Clients become Advocates
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