Submitted by: Adam Methew
Entrepreneurs, especially the online business vendors are putting in efforts to retain their existing customers because they are worth more than the new clients. There are different facts through which it has been proved that for a business, existing clients are the basic assets, which yield lifelong sales and revenues.
From the present-day market scenario, we could clearly see that entrepreneurs are focusing more on attaining new customers in a bid to increase their sales cycle and perhaps the race will go on as with every passing day there is a seen a considerable addition of new competitors in the market.
Certainly, to strive for gaining new customers is a positive step a retailer takes but going for smarter options serves as a differentiating factor. A wise step would be to give priority to retaining old clients instead of winning new customers, here are the following reasons for which an entrepreneur needs to develop a customer retention program.
Sales Probability
According to a Webgreeters marketing expert, the chances of selling product to an existing customers are 70 to 80%. On the contrary, the probability of earning a sale from a new customer is just 10 to 20%. Today customers have become far choosier than before; therefore, while making purchase from a new retailer, they think twice.
Customer Acquisition Cost
This is a widely known fact of the business world that attaining a new customer costs far more than retaining an old client. What option would you go for? You do not need to rely on big marketing and advertising campaigns for regaining your old clients, even just an alert email or newsletter regarding your new promotions and sales offers is enough to get them back to you.
Profitability Percentage
The profitability percentage of an online business depends greatly on the customers retention rate. According to Webgreeters marketing manager, Jack Martin, 10% increase in the customer retention rate can bring about 80% profitability for a company. The loyal clients also serve as brand advocates and they spread a positive-word of mouth about your business and company and entice other people in their social circle to do business with you.
Revenue Forecast
The statistical data collected by Webgreeter (a live chat service providing company), reveals that a companys 90% of the future revenues will be generated just from 25 % of the existing customers. Thus, the existing customers serve as lifelong assets for any kind of business.
From the different statistical analysis described above, it would be no wrong to draw a conclusion that an existing customer is 15 % worth more than an existing client.
What strategies a Business Can Use to Retain Existing Clients?
Retaining existing clients has never been as difficult as gaining a new one. By applying few simple but useful strategies, a business can get back its old buyers.
Stay In Touch
Dont ever get detached from your existing clients instead say in-touch with them through newsletters. Keep them informed about your business by sending emails regarding your new promotions, sales, discounts or any other similar things. Moreover, you can also stay connected with them by making an attractive and livelier social media page where you can organize special activities, which invite existing customers towards your business.
Give Special Privilege to Your Existing Customers
Offer special discounts or purchase benefits for your existing customers as they revisit your e-store to make a purchase. This never means that giving value to your new customers is not necessary, definitely you need to give them attention but always keep in mind that your existing clients can also become a source of bringing new buyers for your business and products.
There is much that depends upon the entrepreneurial skills of a retailer, using wise and well thought of strategies, any vendor can reach up to the heights of success; whereas a wrong decision or poor strategy would surely give out reversed results.
About the Author: Professional in Corporate Communication and Digital Marketing, Adam Methew’s area of expertise include Customer Service, Digital Marketing & Branding, Entrepreneurship, Growth Management, Ownership Strategy, and Growth Strategies. Adam has offered his contributions as a “Valuable Contributor” for
LiveAdmins.com
and other valuable blogs.
Source:
isnare.com
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