• The difference between those companies which grow and those which don’t is whether they pay attention to their existing customers. The more customers you keep coming in the door, the more likely you will achieve your business goals.
• It costs 6-7 times what it costs to keep a customer than it does to find that new customer. So why are companies focusing so much on generating new customers?
• The biggest hurdle for most is where to begin. In this blog post, I will share 5 easy strategies that you can use to keep your existing customers happy and over the long term, this will increase your profits for much less investment.
The Success Rate of Selling To An Existing Customer is 60-70% vs only 5-20% For A New Customer.
Why do customers leave?
5% Gets a Friend to Provide Service
9% Are Persuaded to Go To A Competitor
14% Are Dissastisfied
68% Believe You Don’t Care About Them
68% Need Constant Convincing That You Care
A business the “gets this” and invests in customer retention does so because it is the biggest revenue driver they have, according to KPMG.
5 Reasons You Need To Care About This
- You will see more revenue. These customers already have bought from you, so unless you really screwed up, they will buy again. They already trust you and you already know something about them so you will find it easier to develop offers that compel them to action.
- Less Marketing Is Necessary. You’ll spend less time because you won’t have to ALSO find them and convince them to buy, so you’ll spend less on marketing. A new customer costs 16 times more to maintain than an existing one. If you have a restaurant, studies show it takes 4 visits by a customer before they become a regular.
- Get Feedback So you Can Improve Their Experience. All you have to do is ask for that feedback and your existing customers will likely provide it. They will feel honored to have been asked and you’ll gain valuable insight that you can use to improve your offering.
- Higher Profits. Selling new customers often requires price discounting. Selling to your existing customers is based on value. They will be more receptive got up-selling and cross selling because THEY ALREADY TRUST YOU. According to Gartner Group, 80% of your revenue comes from just 20% of your customers, so reward them and show them you care!
- Lower Costs. A small 5% increase in customer retention can increase a company’s profitability by 25-95% according to The Harvard Business School.
Fastest Way To Retain Customers Is Through Loyalty Programs
The easiest way to build a database today and to know you’ll be reaching customers directly is to go MOBILE. Customers only have one phone yet have multiple emails. Relying on email marketing or just social media is based on a strategy of HOPE.
With Mobile marketing, you are reaching your customers right where their attention already is, on their personal phone. A whopping 98% of your messages are read within 5 minutes. Include an incentive and those customers come back in more often. Add a loyalty program that rewards customers for coming back and it acts as a multiplier.
Mobile marketing is permission based, so only those who have given their number willingly will join your program. You will find those are your best customers. They are the folks who want to engage with your business. Regularly. And isn’t that the best customer to have?
Interested in learning more about how a loyalty program might work for your business? Contact me for a no obligation 1-to-1 tutorial.