The Importance of Retaining Your Existing Customers  When we talk about sales and marketing campaigns, we are often focused on how we can bring in new customers and grow our companies. Obviously, we all want our businesses to expand, but it’s vital that we don’t forget about our existing customers. One of the most important things that businesses need to focus on is keeping their existing customers happy. If you want to have a loyal customer base, you need to focus on your existing customers and figure out what will motivate them to purchase from you over and over again. Here are a few reasons why it’s so important you keep your existing customers in mind.

It costs more to gain a new customer.

Constantly running marketing campaigns to draw in new business, instead of paying attention to your existing customers, will end up costing you a lot of money. While direct marketing campaigns are great at bringing in new business, don’t forget about the customers you’ve already gained through those campaigns. In order to keep the same amount of customers you had, increasing marketing costs becomes necessary, so it will save your company money if you tap into the customers you have already fought to gain instead of spending more money trying to fill the gaps. It also helps to keep in mind that according to Bain and Co., a 5% increase in customer retention can increase a company’s profitability by 75%. If you want to see your company become more profitable, it seems that focusing on current customers is the way to go.

You already have a relationship with existing customers.

It is much easier to sell your products to existing customers than to someone who has no idea what your company is all about. Personally, I am much more likely to buy from a company I had a good experience with, especially if they offer me incentives to purchase from them again. Forbes makes a great point by saying, “If you have done a good job taking care of your customer in the past, and your products have performed well for them, they are usually willing to give any addition to your product line a try. Because the relationship is in place, far less (expensive) selling is required.” Tap into relationships you’ve already built and you’ll save time and money.

You know their buying history.

If you work with your existing customers, you already know they’re the target audience you’re looking for. They’ve already purchased from you, so you know they have a need for your products and services, and you may have insight into additional products they could try. Most of the work is already done for you in terms of marketing. Since you’re aware of their buying history, you can try giving them incentives to purchase a similar product from you, especially if they’ve had a good experience with your company.  Here are a few things you can try:

Offer something for free. Let your customers test out a free product and reward them for their loyalty.
Offer a discount. If you give them a good reason to purchase from you again, like a percentage off, they might return to you instead of going somewhere else.
Reward customers for bringing in new business. Using a referral program is a great way to draw in new business without tapping into your marketing budget. You can use your existing customers in order to draw in new business.
Refer customers to a similar product or service. If you’re looking for ways to market to your current customers, let them in on new products and services they might be interested in. Help keep them aware of what’s going on at your company.

Gaining loyalty from your current buyers is a great way to make sure you get the most out of each and every customer. Since you work hard to get your customers in the first place, make sure you give them incentive to stick around! Has your company experienced the benefits of targeting your existing customers? Share with us!

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