You are a business owner and you want your revenue to grow. If it is true, do not repeat the same common mistake other businesses make. Do not spend so much time on attracting new customers.
No doubt, new clients account for an important part of any new business growth. However, in some cases, it is not the best investment of time and costs.
Your most precious resource for growing consists of the existing customers. Let’s consider why focusing on their retention is the best option for creating long-lasting business ties and stability.
There are at least five reasons why you need to concentrate your marketing efforts on your regular clients.
Repeat customers are ready to pay more
According to RJMetrics, permanent customers are ready to pay 300 percent more. That is because they trust you already. While new customers are likely to pay smaller prices to avoid risks, regular buyers would eagerly purchase more expensive goods or more sophisticated services.
Repeat customers are easy to persuade
You would never like to waste your valuable time and effort on some potential clients who may never buy anything in the end.
Remember that even if you regard your target customer as a prospective one, your marketing campaign has only a 13% chance to end in a purchase.
Although, if you offer your new product or service to a repeat customer, the chances to sell them increase up to sixty or even seventy percent. So, is it really worth spinning a wheel without any winning?
You will spend more money on new customers
It is especially important to consider if you own a small business or experience hard times. One of your basic tasks is saving costs.
However, your marketing efforts aimed at new customers will cost you five times more than when their objective is retaining current customers. Moreover, you will still spend 16 times more to make your new customer’s spending level equal to that of your regular one.
Thus, if your costs are limited, invest them into more efficient marketing strategies.
Repeat customers’ opinion is vitally important for your business
Maybe you are about to hire a brand ambassador or launch an expensive marketing campaign. If your business is rather small, consider the outcomes. In many situations, doing that is almost impossible.
There is another option, though. You can get your ambassadors for free. You are sure to have already created a bunch of loyal clients who are always ready to praise your efforts and products. Can your business promotion be better than that?
Take into account that repeat customers can communicate your plusses to 50% more people than accidental buyers can usually do. And they are likely to be more persuasive.
Tip: Our five-step method will help attract more referrals throughout a number of email marketing campaigns.
Strong businesses owe their success to customer retention
If you want to develop and increase your business, do not get stuck on the number of new customers.
When you retain your regular clients, even 5% of them, you will get the profitability increase by 75% in total. Thus, your future prosperity depends on the ability to strengthen existing relationships but not on striving for new ones. The fact is that 80% of future revenues emerge from 20% of regular customers.
You can make much by investing little in your repeat customers’ retention
As a result, your business will be quite prosperous with less effort spent.
To start driving your repeat business ties, try email marketing first. It is the easiest way to remind your existing customers of your high-quality products and services. They are certain to come back and stay.
You will need to learn how to make much from email marketing aimed at repeat business.
Remember? We’re here to help! Click the link below to learn more.