6 Facts That Show How Improving Customer Loyalty Will Grow Your Business
Often the most overlooked—and most important!—market for a business is existing customers. Sure, you want to attract new leads, but you’ll want to put equal effort into customer retention as you do customer acquisition.
Why is that? Put simply, it’s cheaper and easier to sell to your existing client base than to acquire a new customer. That’s because you’ve done the front-end work of convincing a prospect or lead to a sales conversion, and therefore know your customer has an interest in your product or service. That early effort is, in essence, wasted if you don’t continue to re-engage past customers and earn repeat business.
Here are just six stats that show the importance of building a loyal fan base among your customers:
- It’s 6-7 times more expensive to acquire a new customer than it is to keep one
- Increasing customer retention rates by 5% increases profits up to 95%
- Conversion rates of an existing customer is 60-70%, versus 5-20% for a new prospect
- Existing customers spend 67% more than new customers
- 83% said loyalty programs make them more likely to continue doing business with certain companies
- If satisfied by an experience, 73% of consumers will recommend a brand to others
Does your business have an engagement strategy for current customers? If your focus has been primarily on capturing new leads, consider dedicating a certain portion of your time and budget on increasing customer loyalty and repeat business. Popular tactics to re-engage your client base include email engagement campaigns, frequent buyer and loyalty programs, and past purchase incentives.
If you’re looking for assistance in leveraging your current client base, SKYFALL BLUE can help. Contact us today to discover how your business can increase customer loyalty and repeat customers.