Marketing is what makes the difference between a company you know and a company you trust.
There are lots of brands and products that we recognize by their branding and marketing – but that doesn’t mean we buy it. Customers shop where they are confident. Customers buy from companies they feel they know – and who they feel know them. The success rate of selling to an existing customer is 70%, compared to a success rate of 20% when selling to someone new. The bang for your buck lies in those who are already loyal customers, yet marketing always seems to focus on getting new customers.
Invesp discovered that 44% of companies say they are more focused on acquiring new customers, and only 18% focus on retaining the customers they already have. This is a huge gap between marketing focus and successful conversions. We’re not saying to abandon your efforts in cultivating new client-relationships. But today we are going to look at ways to target your marketing to those customers who are already loyal to you – because a shift to customer retention, rather than acquisition, is good business.
44% of companies say they are more focused on acquiring new customers, and only 18% focus on retaining the customers they already have.
Some quick numbers:
- It is 5 times more expensive (think marketing, advertising, etc.) to gain new customers than it is to keep an existing one.
- If you increase your retention-rates by just 5% you can expect a profit increase of 25-95%.
- Customer retention = more accurate financial forecasting.
The bottom line is this: if you give your clients a reason to trust in your company, they will remain loyal to your brand. Trust is the key to turning a customer into a lifelong client.
Customer Service is (usually) what they’ll remember most
Using a tool like Rankbound can help you track your engagements with your clients to see where they are seeking support the most. By following the channels of communication you can develop real-time measurements of customer service.
Sending a follow-up email or phone call after a transaction is a great touch. Want to add a little more? Customize the communication to include the customer’s name. It’s also a great practice to have sales representatives ask for and use the names of customers during an interaction.
37% of customers shared that they are loyal to certain companies because they support a shared cause. You can easily connect with your customers and share your charity and community impact through social media.
Under-Promise & Over-Deliver
This is a business basic, but it rings very true here. Rather than focusing your efforts solely on attracting new clients with introductory offers, look at ways you can surprise existing clients with over-performance or personalized attention.
Use your Resources
Show your customers you care by clearly delegating specific resources to their project. By making them feel like they have a team who’s devoted to them, they will have confidence in the process. This ties into the U.P.O.D. rule above. If you deliver more time or more resources to a project than you initially promised, clients will be impressed by your devotion to them.
As always – the proof is in the product. By creating something that is valuable, you will always have customers. But by shifting the focus to retaining the customers you already have, you can boost profit, build strong relationships, and share in a culture of trust with your customers.
Thinkbound Marketing Solutions can help. Ask us today how we can market to both your potential customers, and your existing ones.