Stop Racing to Increase Revenue When You Have Already Won
It’s time to start cashing in on your prize.
Customer acquisition is an important strategy for every business, but it doesn’t always equate to increased revenue.
Don’t be fooled by the human desire for more. It requires a higher level of effort and is more expensive.
In fact, research shows it can be five times more expensive than focusing on customer retention (Saleh, 2021).
You have already worked so hard to acquire your current customers, and you know they are willing to purchase from you. Why not tap into this and build strategies around nurturing these relationships to increase sales? It is essential to find the right balance of allocating your resources to both customer acquisition and retention.
Outplay your competitors.
If you have been hustling to get more customers, you're not the only one. Most companies prioritize customer acquisition, and only 18% of companies focus more on retention (Saleh, 2021).
This presents you with the opportunity to distinguish yourself in the market.
There is also value in knowing your customer retention rate and churn rate. Analysis of both these calculations can reveal your strengths and weaknesses and guide your tactics to increase retention rates and sales. It is estimated that it only takes a 5% increase in customer retention to gain a 25-29% increase in revenue (Bernazzani, 2021). So building strategies around retention should produce an impressive ROI. It is also proven that retained customers purchase more often and spend more than new customers.
Even though the numbers don’t lie and current customers can be more valuable than acquiring new ones, you still have to ask for their business.
Time to get tactical.
Communication is the key to success in every relationship. You want to remain top of mind for your current customers and offer them messaging centered around providing value. There are opportunities to upsell, cross-sell, and retarget specific products to customers you know will be interested in them.
Thankfully marketing automation can help you with this and build long-term relationships with your customers. Take a look at this article by Shopify to learn more about email automation campaigns: 7 Automated Email Campaigns That Win Customers and Keep Them Coming Back.
Email marketing is one the best channels to connect with customers, and having an automated system can help you stay on track with your communication efforts.
It’s time to develop more strategies centered around your current customers.
Contact us to learn how we can develop the right strategy for your business.