3 Ways to Make Existing Customers Feel Like Brand New Customers
One query that we get asked a few times by some of our clients, is whether or not they should be investing more in acquiring new clients than they spend on retaining existing ones. There is not a simple answer to this question as many things have to be taken into consideration.
Everybody loves new things. They’re shiny, bright, generally smell good and inspire excitement. Given this, it’s no surprise that in business, many companies tend to focus on acquiring new customers and not as much on their existing customers.
Some research has shown that the cost of acquiring a new customer is five times greater than the cost of retaining a current customer. Despite this, 44 percent of companies put their resources primarily into customer acquisition, while only 18 percent put more energy into retention.
It is of course understandable why there would be a focus on new customers as this is the obvious way to achieve growth as a business. It is however important to remember that growth depends on building on an established foundation. That foundation being your existing customers.
As with most relationships, there is a natural inclination, with time, to take each other for granted. This makes it very important for any business looking to achieve success, to be mindful of maintaining a good relationship with your existing customers.
Here are 3 things that you can do to make sure that your existing customers feel appreciated and want to maintain a relationship with your business.
- Remember Birthdays – Collecting customer data should be an important part of your business. After all, you need to know the people you are designing your product for. Sending a birthday card, digitally of course, can go a long way in keeping your brand in the forefront of a customers’ mind
- Pre-Release Privileges – Before you release a new product, let your valued customers get a little sneak preview of what you have to come. This gesture can go along way in making your customer feel valued and strengthen your relationship
- Offer Discounts – This works particularly well if your customer is making recurring payments. The occasional reduction in price is enough to win you some loyalty and get them feeling good about being your customer.
One of the great residual benefits of focusing on existing customers is that they are more likely to talk about you to their friends. This happens to be one of the best forms of promotion you can get.
Our humble advice is to try and keep a balance on how much you spend on acquiring new customers and how much you spend on existing customers. This includes time and money.
How to achieve this? Your email list is one of the best ways to grow and reach your audience.