Bain & Company estimate that is cost 7-8 times more to acquire new customers than it does to retain existing ones. This means that every lost customer is going to cost a whole lot more to gain back. Obviously losing a customer may be unavoidable in some cases, but if you make a habit of losing too many it can easily offset any potential growth you may be experiencing. Here are the most important reasons for putting in the effort to keep your existing customers.
While any long term growth strategy is going to involve new customers, companies often forget that a great source of revenue growth can come from your existing customer base. These customers will often be more receptive to new sales and they already have a relationship with your company.
One of the easiest ways to get new business is referrals. They require no work on your part and the potential customer comes in with a good image of your company. If you can cultivate a strong and broad customer base in multiple industries, you can let your customers bring your new business instead of having your salespeople reach out to everyone.
Maintaining a strong existing customer base means you have plenty of happy customers who will write good reviews and speak highly of your business. This not only can translate to new business but will also just help your reputation within your industry.
Fostering a strong relationship with your existing customers can be a huge opportunity for your business but can be a hard task to accomplish. Here are some of our best tips for maintaining these relationships.
You do not need to know everything about them, but a little personal attention can go a long way. Try to remember a few details about your customer that make them feel like you are not just like any other salesperson trying to sell them a product or service.
2. Stay in Contact
The amount you need to call or email them will vary by industry and customer, but the important thing is to be consistent and always keep your company in their mind.
3. Reward them for their loyalty
No one wants to feel like they are being taken for granted or that you just expect them to place a certain about of business. Offering an old customer a discount every now and then after they have placed a certain number of orders or throwing in some extra product for free is a great way to show you care. The gesture does not have to be big. A small reward can go a long way.
Strategies on how to get new customers get most of the attention, but it is important to remember the customer base you already have. They represent a huge opportunity for your business and should not be taken for granted.