Post by account_disabled on Dec 7, 2023 5:31:26 GMT
New customers are expensive. That’s because customer acquisition marketing is costly. You’ll need to run targeted ads, identify keywords, perform prospecting outreach, and nurture leads through your sales funnel.
All of this is essential, but it also takes a lot of time and money.
Customer retention marketing, on the other hand, is far Industry Email List easier and more cost effective. You‘re marketing to people who already know you, have already purchased from you, and have consented to receive further communications.
Outreach typically involves email blasts, company newsletters, and phone calls. This carries a much lower price tag than marketing to someone who has no idea your company exists.
How much lower?
It has been reported that marketing to existing customers can be up to seven times cheaper than marketing for new business.
3. Customer Referrals
One beautiful thing about loyal recurring customers is that they bring referrals with them. This occurs when one of your loyal customers recommends you to a friend or family member, and that person makes a purchase.
Customer Referrals(Image Source)
Regarding customer referrals, some products are more easily promoted through word of mouth and direct communication. Typically, those are products with easily perceivable results like weight loss products, self-care products, Minoxidil, and other hair growth products.
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Your loyal customers become walking billboards for the effectiveness of your business, bringing in more customers who can then be retained and make their own referrals over time.
4. Probability of Sales
Retained customers also have a higher probability of buying from you. Your retained customers are likely to buy and spend more than someone coming through the door for the first time. That’s why retention increases of just 5% can improve a company’s revenue by up to 95%.
Of course, this is easier for some businesses than others. Those that provide more than one product or service are more likely to grow with happy customers. These are people who will want to continue using your services while also adding on new ones. For example, HelloRache is a business that provides virtual assistants in the healthcare industry. Among its services are virtual receptionists. If clients already have this service and are satisfied with what they’re receiving, they might want to incorporate virtual scribes and virtual assistants, returning to generate more revenue for this growing company.
Conclusion
Your existing customers represent a growth opportunity for your business, allowing you to improve your bottom line without breaking the bank on new customer acquisition.
Of course, that’s not to say that you can ignore new customer acquisition. That will always be a vital piece of the business marketing puzzle. But with improved retention, you can save money, improve customer loyalty, gain referrals, and market with increased sales probability.
Monitor your retention rates closely and use them to determine how your retention efforts are going and what needs to be done to make them even better.
All of this is essential, but it also takes a lot of time and money.
Customer retention marketing, on the other hand, is far Industry Email List easier and more cost effective. You‘re marketing to people who already know you, have already purchased from you, and have consented to receive further communications.
Outreach typically involves email blasts, company newsletters, and phone calls. This carries a much lower price tag than marketing to someone who has no idea your company exists.
How much lower?
It has been reported that marketing to existing customers can be up to seven times cheaper than marketing for new business.
3. Customer Referrals
One beautiful thing about loyal recurring customers is that they bring referrals with them. This occurs when one of your loyal customers recommends you to a friend or family member, and that person makes a purchase.
Customer Referrals(Image Source)
Regarding customer referrals, some products are more easily promoted through word of mouth and direct communication. Typically, those are products with easily perceivable results like weight loss products, self-care products, Minoxidil, and other hair growth products.
MEET RANKTRACKER
THE ALL-IN-ONE PLATFORM FOR EFFECTIVE SEO
Behind every successful business is a strong SEO campaign. But with countless optimization tools and techniques out there to choose from, it can be hard to know where to start. Well, fear no more, cause I've got just the thing to help. Presenting the Ranktracker all-in-one platform for effective SEO
We have finally opened registration to Ranktracker absolutely free!
CREATE A FREE ACCOUNT
Or Sign in using your credentials
Your loyal customers become walking billboards for the effectiveness of your business, bringing in more customers who can then be retained and make their own referrals over time.
4. Probability of Sales
Retained customers also have a higher probability of buying from you. Your retained customers are likely to buy and spend more than someone coming through the door for the first time. That’s why retention increases of just 5% can improve a company’s revenue by up to 95%.
Of course, this is easier for some businesses than others. Those that provide more than one product or service are more likely to grow with happy customers. These are people who will want to continue using your services while also adding on new ones. For example, HelloRache is a business that provides virtual assistants in the healthcare industry. Among its services are virtual receptionists. If clients already have this service and are satisfied with what they’re receiving, they might want to incorporate virtual scribes and virtual assistants, returning to generate more revenue for this growing company.
Conclusion
Your existing customers represent a growth opportunity for your business, allowing you to improve your bottom line without breaking the bank on new customer acquisition.
Of course, that’s not to say that you can ignore new customer acquisition. That will always be a vital piece of the business marketing puzzle. But with improved retention, you can save money, improve customer loyalty, gain referrals, and market with increased sales probability.
Monitor your retention rates closely and use them to determine how your retention efforts are going and what needs to be done to make them even better.