Retention Marketing or your way of retaining customers is actually your best route to improve your sales and ROI. An infographic shows that 80 percent of your future profits will come from just 20 percent of your existing customers. It simply means that your way to success is just within your grasp.
Customer Retention should be your priority. Sad to say, most businesses’ least priority is to retain customers. They are too focused on advertisements and promotions so that they can acquire new customers. As a business owner, you should be aware of the fact that you can easily promote and sell more products to your existing customers because they’ve already been purchasing from you. What’s more, you have also gained their trust and loyalty so dealing with them is much easier than acquiring new sales lead.
What’s the deal about Retention Marketing?
Retention marketing boosts you up. Aside from other online marketing strategies you’ve got, retention marketing may take time to return your investment, but it still outweighs customer acquisition. For one, it surely increases your income and it eventually gets you more referrals through high quality customer service.
Customer retention increases your income. As you have gained the trust and loyalty of your existing customers, you’re bound to get more sales from them because they are easily convinced to get new items. Also, you need not spend much time or resources on convincing and looking for more potential buyers. The probability of your current customers’ purchases is 60-70% compared to the purchases of the new ones.
Moreover, the high cost of acquiring customers renders many customer relationships unprofitable during their early years. Only in later years, when the cost of serving loyal customers falls and the volume of their purchases rises, do relationships generate big returns. The point is 5% increase in customer retention results in 25%- 95% increase in company’s profitability, says Bain & Co.
Customer retention needs high quality customer service. Be reminded that the bad news of your customer service spreads like wildfire. To counter any possible negative word of mouth, as a business owner, you’d better give importance to your customer service. You should also know that there are some ways to use positive word of mouth marketing to your advantage. Bottom line is how you passionately address their needs and concerns greatly defines your relationship with them. They tend to stay and refer you to their friends. And, of course, more and more customers are willing to repeat purchases or pay more if they are very happy with your service.
Therefore, success is definitely within your grasp, work it to your advantage. High quality services or products that you provide with excellent customer service can help you compete with top-tier businesses.
Juvy Ann Magbanua
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