Reaching new customers is a crucial part of the expansion and success of your business, but don’t overlook the goldmine right under your nose – your existing customer base. Courting a new customer costs anywhere between five to ten times the cost of retaining an existing one, and 80% of a company’s future revenue comes from just 20% of the existing customer base.
Here are some easy marketing tips to help target these clients that you can start doing immediately:
Stay in touch – regardless of what the message is, make sure you are communicating with them regularly. Emails and blogs are great way to do this. Even if they’re not interested in the specific offer or service you’re currently promoting you’re still creating a sense of consistency with the client and reminding them that you’re there when they need you.
Remind them of their value and reward loyalty – sending special promotions or giving discounts go a long way in helping to build customer loyalty. It’s also important to create incentives for customers to keep coming back, or a loyalty club which could offer preferred rates, promote multiple purchases, or a points system. Clients also respond well when they feel that they know the people behind the business. Sending holiday cards or emails for example is a great way to create a sense of familiarity between your organization and customers.
Promote referrals – word of mouth is a vastly effective marketing tool that has to be earned, not bought. If your current clients are happy and incentivized to refer their friends, you’ve created a win-win situation.
Show you care – Follow up with clients. Once the job is done and payment is received, you will still want to follow up with them to ensure the job was done to their satisfaction. This is a great way to show you care about their experience, and to remedy any bad experiences the client may have had before they leave a negative review online. 90% of consumers say online reviews impact their buying decisions, and unhappy customers tend to be more outspoken than happy ones. Following up is also a great way to get customer feedback. As a business, you should always have some kind of platform for feedback, otherwise you’ll never know what you’re doing right or wrong.
You should treat every customer that has ever done business with you as a potential source of recurring revenue. It’s far cheaper to access these clients and they are more receptive to your marketing than a new one would be because of the existing relationship. Failing to nurture and retain these customers is a huge factor in why some businesses fail. Customer satisfaction is key. Before marketing even comes into play, you need to make sure they always have a positive experience, and should any issues arise, be quick to remedy them. A 5% increase in retention can increase a company’s profitability by 75%, so don’t undervalue what an amazing asset these customers are!