17 Jun Reap the Benefits of Customer Retention
Each year millions and millions of dollars are spent persuading potential customers to buy a brand. However precious little is spent on them once they become customers. Think of the analogy of a marketing bag where all of the effort (and Dollars) are being spent on gathering up new customers and putting them in the bag only to let them drop out of a hole in the bottom of the bag only to be gathered a again for subsequent purchasers.
Stop to consider that it costs 7 times more to acquire a new customer than to reactivate an existing customer, a customer who is predisposed to your brand and is likely to be satisfied with your product or service.
It is becoming harder and harder to win new clients. Most companies operate in saturated markets. Quality differences between products and services are minimal and due to the internet it is very easy for each customer to compare the various offers against each other and choose the best one. Customers are more and better informed and are not willing to accept the first offer. While new customers are important, actually critical, to every business, properly managing and retaining customers form the real backbone of business success.
There is a lot of truth in the old saying “Your best source of new business is your existing customer base.”
Effective customer retention strategies are vital to a successful and profitable business.
The aim of customer retention is to build and maintain a long term relationship with customers. Both parties – the company and the customers – benefits from each other.
So how can you benefit from customer retention strategies:
- Increase of repurchasing behaviour
- Increase of cross selling behaviour
- Increase of the value of a customer
- Declined price sensitiveness
- Positive word of mouth recommendations
- Declined migration rates
- Declined costs for the acquisition of new customers
- Strengthening of the unique selling proposition
Talk to PointB about how you can leverage your current customer base to generate new business