Making the Most of What You Have.
According to a 2010 report from Lee Resources, attracting a new customer costs five times as much as keeping an existing one. In addition, while the probability of selling to a new prospect is 5-20%, the probability of selling to existing customers is 60-70%. (Marketing Metrics). These studies illustrate why it’s important to have a process in place for staying connected to your customers long after they visit or make a purchase. When you don’t continue marketing to your current customer base, you are leaving money on the table.
Driving new business means convincing those not familiar with you or your product to try something new. Trust, product understanding and expectations are hurdles that have to be overcome. On the other hand, for current customers these hurdles are non-existent. That is why those already familiar with you will be more open to trying something new.
Serve your existing customers well, make them feel attended to and appreciated.
Even if you’re the only game in town right now, competition will come. By building a strong and active connection with your existing customers, they will be less likely to jump ship or move on to the next shiny thing.
It is common for business owners to concentrate exclusively on acquiring new customers. This is expensive and imprudent. For a sustainable business, it is important to understand the value of your existing customers. Think long-term. Remember to spend time and attention on customers who are already loyal, who are likely to return, and who can share their good feelings about your business with others.