Have you ever wondered which is more important to the success of your business: retaining clients or finding new ones? Acquiring new customers is necessary to your long-term business plan as new clients fuel your business forward. However, it is critical, especially for established businesses, to also focus on customer retention. This is often an untapped resource that has many benefits to your overall business growth strategy. 

Once you have invested all that time and money into acquiring new customers, maximize that investment by retaining them.

Here’s why we think marketing to existing customers is a game changer!

1. It’s cheaper.

In general, the costs associated with repeat business are significantly lower. We’ve found in our business and heard from others that 70% of companies say it’s cheaper to retain a customer than acquire one, while others have suggested that the cost of acquiring a new customer can be as much as seven times more expensive.

When targeting existing customers — who have already proven that they trust you enough to buy from you — you have a much stronger chance of making a sale. 

In addition to spending less to make a sale, nudging existing clients to buy again is a chance to demonstrate your commitment to rewarding loyalty! Offering loyalty discounts or birthday specials to previous clients is just a few examples of how to make this happen. They don’t take a great deal of effort, but they do show the customer that you value their business. When customers feel appreciated, they, in turn, have more appreciation of your business. This promotes long-lasting and profitable relationships. Feel-good feelings from your customers means more sales for you!

2. It’s faster.

It’s often much easier to sell to an existing customer than a new one. This is because all barriers to purchase have already been overcome. Existing customers may just need a slight nudge to purchase again, and this will speed up your sales process.

Existing customers already know you are a trustworthy company with products or services that they need. You have already offered them a pleasant business experience previously, and because of this, they are much more likely to make future purchases and generate more business for you. In comparison, persuading potential leads into becoming customers sometimes requires a lot of time and effort, and ultimately, costs more.

Ultimately, it can take a lot of time and effort to convince leads to convert into customers, whereas existing customers will likely buy from you again more easily! By focusing on awesome customer retention, you’ll find sales come quicker. 

3. It’s good for your business.

Did you know that if you neglect your customers, they feel free to shop with your competitors? When a business relationship is deemed ‘over’ and your customers are beginning to shop for another product or service, they will start comparing vendors again. This is why client retention is vital to the success and growth of your company. You need to maintain a relationship with your customers so they don’t buy from someone else. 

By implementing the best possible customer retention plan for your business, you can set yourself apart from your competitors. It’s important to your brand, as well. You want to be associated with taking care of your clients. Who doesn’t want the reputation of being a business that takes care of its customers?

When a client is loyal to your brand, they are more likely to talk about you to their friends and colleagues. This word-of-mouth advertising is probably the most credible advertising you can get – and it doesn’t cost you anything! Loyal clients who are saying good things about your company inspire others to buy, effectively converting new customers with no associated cost. You just can’t beat that!

While loyalty and engagement are not always measurable,’, they are still essential to your bottom line. Customer acquisition is critical in the early and growth stages of a business, but once you’ve built a customer base, even a small one, retaining those clients must be on your mind. The more customers you have, the more important retention is. 

Nurturing relationships and selling to your existing clients is essential to the future of your business. At Elowyn Press, we take pride in helping our clients do just that. Contact us today to find out how you can make the most of what you already have – your client list!