In the competitive world of event management software, acquiring new customers is only half the battle. Retaining them is what drives long-term success. As the industry evolves, event organizers expect more from their platforms – streamlined functionality, an all-in-one experience, and new features.
With increasing customer expectations and rising acquisition costs, retention has become key in achieving sustainable growth for event management platforms. Here’s why customer retention matters more than ever and how adding embedded products can help create stickier platforms that keep users coming back.
1. Lower Cost, Higher ROI
Acquiring a new customer can cost five times more than retaining an existing one (Harvard Business Review). Marketing, sales, and onboarding expenses quickly add up, making it crucial to maximize the lifetime value (LTV) of current customers. High retention rates translate to increased revenue without the constant need to attract new users.- Cost to Retain a Customer 20%
- Cost to Acquire a New Customer 100%
By embedding additional services – like ticketing, insurance, and payment processing – event management platforms can provide more value, reducing the likelihood that users will seek out competitors. The more features a platform offers, the deeper the customer integration, making switching costs higher and ultimately increasing retention.
2. Greater Revenue Predictability
A high customer retention rate leads to predictable, recurring revenue streams. Studies show that increasing customer retention rates by 5% can boost profits by 25% to 95% (Bain & Company). Instead of relying on one-time sign-ups, platforms can build a sustainable business model based on repeat usage and subscriptions. Embedded products, like event insurance or vendor payments, can further solidify predictable revenue by integrating into the core platform experience. These products create additional monetization opportunities while also giving customers more reasons to stay.Improving customer retention by just 5% can increase profits by 25-95%.
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3. Enhanced Customer Loyalty and Advocacy
Loyal customers don’t just stick around; they become brand advocates. Research indicates that 77% of customers are likely to recommend a brand after a positive experience (Temkin Group). A satisfied event organizer is more likely to recommend a platform to peers, creating organic growth through word-of-mouth marketing. This network effect helps build credibility and trust in the marketplace. Embedded products add convenience and efficiency, strengthening customer loyalty. For example, offering embedded event liability insurance makes it easier for organizers to meet event requirements and access proof of insurance documents, reinforcing their reliance on the platform.%
77% of customers are likely to recommend a brand after a positive experience.
4. Competitive Differentiation
The event management space is crowded, with new players constantly entering the market. Offering embedded products creates a unique value proposition that differentiates a platform from the competition. Platforms that integrate insurance within their ecosystem provide a more comprehensive solution, making it harder for customers to switch. Retention isn’t just about keeping customers happy—it’s about making a platform indispensable. The more features a platform embeds, the harder it is for event organizers to leave.5. Increased Customer Lifetime Value (CLTV)
The longer a customer stays on a platform, the more valuable they become. Studies show that retained customers spend 67% more than new customers (Bain & Company). Retained customers generate more revenue over time, whether through subscription renewals, upsells, or by purchasing embedded products. For example, an event management platform that offers embedded event insurance can generate additional revenue on each event organized. This not only increases CLTV but also simplifies the user experience, making it easier for event organizers to manage risk without leaving the platform.%
Retained customers spend 67% more than new customers.
How You Can Have Your Cake (and eat it, too)
Customer retention isn’t just a nice-to-have, it’s a necessity for the long-term success of event management platforms. By focusing on retention strategies and leveraging embedded partnerships, platforms can create stickier experiences, build deeper customer relationships, and drive sustainable growth.
Event organizers want simplicity, efficiency, and an all-in-one solution. By embedding essential products directly into their platform, event management companies can provide unparalleled value, ensuring their customers stay engaged for the long haul.