6 Intriguing Stats: Why Repeat Customers Are Profitable
It costs far less to retain an existing customer than it does to acquire a new one; you’ll also find that you don’t need to spend as much time or money educating that returning customer or directing them to your sales funnel. Cultivating happy, repeat customers is the key to a steady stream of revenues and to a more profitable. In general, you’ll spend less on marketing, enjoy customers who spend more per order and achieve a better return on your investment when you focus on re-selling to your existing customer base.
6 Ways Marketing to Existing Customers Benefits your Business
You’ll Spend Less Money on Marketing
A repeat customer is already convinced — provided you’ve done a good job with your customer service and follow-up; customer satisfaction surveys can help you gain insight into how you are doing. You’ll mainly be marketing to inform — not to convert — and you won’t have to spend quite so much to do so effectively. Including a strategy for marketing to existing customers in your budget can lower your overall costs and ensure that you are not overspending on marketing.
Attain a Better ROI
Since repeat customers are not only less expensive to sell to, but also more likely to buy again, you’ll naturally gain a higher ROI your marketing efforts for this particular buyer.
Happy Customers are Brand Ambassadors
Customers who buy from you — and then come back for more — are by definition, happy customers. The word of mouth generated by these key clients will help promote your business and make it easy for you to reach out to others. Happy customers can help promote your brand to their own circle of friends; according to a study by Ogilvy and Google, a full 74% of buyers make decisions based on a personal recommendation from a friend or colleague. Referrals are just one way to measure customer loyalty and happiness and get a sense of how well you are doing.
Repeat Customers Spend More
A recent Harvard Business School study found that a customer’s 6th purchase was an average of 40% higher than their first — and the 8th purchase was even higher, an average of 80% more. In general, the longer a customer stays with you, the larger their orders will get; continuing to court and pay attention to current customers can help boost not only your revenues but your bottom line, too.
Successful Product Launches
One of the easiest and lowest risk ways to expand your business is to sell a new product to an existing customer. The client who buys from you steadily already has faith in your brand and will need less convincing to take the plunge and try something new. If you are planning to expand or launch a new line, then your retained customers are the natural starting place for a successful endeavor.
Build Better Products
Your loyal customers, the ones you’ve built a relationship with, are more than just easy targets for your next marketing campaign, they are also an excellent source of information about your brand. Regularly checking in with these customers can yield valuable information about your product line, your customer service and even about the effectiveness of your site and channels. Use this valuable resource and customer feedback to make strategic improvements to your brand.
From Net Promoter Score (NPS) surveys to customer satisfaction surveys, our goal is to help you measure customer loyalty and to make the most of the happy customers you’ve worked so hard to obtain.
Originally published at QuickTapSurvey Blog.