How to sell more through Customer Retention
Amid the hustle and bustle of wanting to reach new heights or markets, make our product reach new people and earn the first big M (MILLION) we forget about those who started our business, those who bet on us from the beginning , those who invested resources in our modest company, we are of course talking about our first customers, the usual, the loyal, the friends!
Studies after studies state that it is 60% to 70% more expensive to look for new customers, however, many companies continue to ignore this (more than established) FACT.
What we want with this article is not to chew on an already chewed bubble gum, but to present statistical data for consideration. Be critical in your actions. There are tools that can help you with these strategies, naturally exponentiating your business to other levels.
Knowing then that it can cost 5 times more to acquire a new customer than to keep another, what can we learn from this?
Creating a customer portfolio is a MUST
Building a loyal and regular customer base is a must, thus avoiding some acquisition costs for new customers that can replace them (the word replace here was used on purpose, should never be replaced but added).
FACT: 44% of companies focus more on acquiring customers versus 18% on retention. Also, 40% of companies and 30% of agencies share the focus between acquisition and retention.
We are talking here about acquiring new customers as if it were a bad omen, but we cannot forget the joy in the achievement of closing a new business and bring a customer who can add (this time, the correct use) to our Loyals list. There are tactics, adventures, and moves that can somehow minimize this burden spoken so far, so we move to:
3 ways to reduce the cost of acquiring customers
- Improve conversions on your website: optimization! Focus! Attention to detail! Rest assured that your website is free of both computer and typing errors, there are no links that will stop anywhere, that your landing pages are better than your competitors, appealing call-to-action, and of course a responsive website for all platforms and devices.
- Change and improve your customer acquisition strategy: analyze case by case and see which one is costing more and which one is costing less, certain channels over time are spending more money, don’t be afraid to close that channel and start over because if it worked once you know the right method to reach the right target audience!
- Use your regular customers: hype is real! If your customers are making a fuss about a new product of yours, that noise will always reach the ears of new customers.
You can also always use real cases/testimonials from customers who are happy with your services!
Abandoned carts? Learn how to lower the abandonment rate in shopping carts
But is it really worth selling more to my customers?!
YES! YES! YES! No business can survive without new customers, but (and that’s a big BUT), its biggest source of revenue always goes on with its regular customers.
So let’s see why this focus is important:
- Reduced costs. As stated above, it costs 7 times more to sell to new customers.
- Room for improvement. Feedback from your customers is of utmost importance, especially when you can improve your offer and/or product.
- Best conversion rate. Loyal customers buy 1, 2, 3 times, increasing the relationship between product/company and consumer market
- More profit. No resources spent looking for new customers, more profit! The possibility of the upselling present here also presents a better probability.
- Less marketing. With more regular customers your marketing strategies do not have to be so aggressive, reducing the cost of marketing campaigns.
How to improve customer retention?
There are tools that can help your business, one of which is Logrise whose specialty is to increase the retention rate. How? Through automatisms, and communicating automatically and directly with your customers thus ensuring greater revenue.
Tools to keep in mind
Just like changing a tire, you need tools that can help you. The same thing applies to digital marketing. There are several tools that can leverage your sales or even reach new markets.
We could detail here a (almost infinite) list of tools, but we decided to apply these 3 in your business:
- Email marketing (newsletter) – as its name implies, sending an email to your customers to remind them that you are still alive, that you have promotions, and that you remember them. There is no better way to increase a customer’s retention than to remind them that they have already done business. (You should also read: Email Campaigns- the strategy to recover abandoned carts)
- Bundle Link tool– Since we talk about email marketing, why not talk about a bundle link tool to share multiple products on a single link? For those who don’t know, it’s a powerful tool that sends your customers a list of best sellers (with all the essential information) on one page. Imagine that you have a database and realize that Mr. Smith bought nails, screws and a hammer. You can send him a link where, when he clicks, he will see the latest promotions from your store with a Phillips key, a drill and nuts – who knows, that was exactly what Mr. Smith was looking for now!!
- A specialized agency – OK, OK… it is not a tool, but they are people who are specialized in the field of digital marketing and who can apply everything that was detailed here while you were sleeping. And since you are reading this article, remember that Logrise is an expert in digital marketing and have a tool has a bundle link tool. You can always contact us, we are willing to help you sell more!
Summing up, do not let yourself sleep on your laurels -in this case, at top of what you have already achieved-. Your customers had a great experience when they used your store. Establish a contact bridge and remind them that you are alive and that you love doing business with them.