Why It Makes Sense for Your Business to Secure Repeat and Recurring Customers
There is a lot of focus, tools, and tips out there when it comes to finding new customers. Obviously, if you want your company or business to grow, finding new customers is necessary. But should finding new customers be the main priority? What about working to ensure that your current customer base stays loyal and becomes repeat customers?
Here’s a look at why it makes sense to keep your current customers happy and coming back for more.
It Saves the Company Money
Did you know that it costs the business less money to get previous customers to purchase from you again than to secure brand new customers? It’s one of the best ways to go about saving your company money. If you happen to rely on online sales, the savings are even greater. Statistics show that it can cost up to 10 times more to get new customers online rather than persuading a previous customer to make another purchase.
Easier to Expand Your Product Line
If you have plans of expanding your product line, it can often be easier to sell these new items to your existing customers who have already purchased items from you. That trust and loyalty have already been created, so they are more willing to make that upgrade or add-on purchase through you.
Allow Them to Promote for You
Once you build a base of repeat customers, you’ll find that your marketing costs will usually go down. A big part of that is because those repeat and loyal customers will inevitably talk about your company and essentially promote your business. Word of mouth is one of the best advertising techniques out there.
There is a Sense of Stability Through Customer Retention
If you are the type of business that is always in search of new customers and you don’t have any sort of loyal customer base, then there is really no stability in your brand or company. Studies show that if you can increase your customer retention by a mere 5%, then you will be able to increase your company’s profits by around 75%. That’s a huge payoff.
How to Keep Your Current Customers
As far as how to keep your current customers, there are a lot of ways you can go about doing this. Some tips can include creating a customer loyalty program or VIP program, so be sure to always offer a high-level of customer service, provide customers with the latest and most in-demand products, stay competitive with your pricing and make it easy for customers to do business with you.
There is where a company such as 89degrees.com can come in handy. They are well versed in such things as creating customer loyalty programs, breaking down the customer journey and then managing it, and much more.
Continue to Build on Your Success with Your Current Customer Profile
While it’s certainly important to grow your customer base and get new clients, it’s also just as important to build on your success by making sure your current customers stick with you and remain loyal.