Let's say what we're all thinking: A return customer is worth their weight in gold for a business whether you're a product or service based brand. A customer or client who has chosen you before choosing you again in the crowded, competitive online marketplace feels like winning a lottery. And in a lot of ways, it is. Whether you're a startup, a scale-up or you've been in business a decade plus there's no denying that the cost of retaining a customer or client is significantly less than finding and converting a new one. In this post we'll look at how returning customers are better for your budget, your profits and your overall brand.
New customers cost to find. Keeping current customers happy shouldn't be an afterthought. Turning one customer into a repeat purchaser takes more than a snazzy Instagram ad or flash sale. It takes a comprehensive customer service strategy that speaks to the pain points and solutions your product or service introduces for your customers. And meets them where they are online. Read on for more about customer retention affecting your budget, profits and overall brand status.
Budget:
New customers cost to find and interest in the brand. Once you define your customer or client persona it's all about finding where they live virtually or otherwise. That gets expensive! Time and energy goes into 'courting' new customers from ad spend to collateral design it can be easy to put all your eggs in the 'information' branding basket rather than the 'keep them coming back' one! But you don't have to. Consider how you design your budget and how much of the spend goes to finding and coercing new customers rather than reinforcing for existing or pervious ones, that you were the best option on the market. With good customer service and quality products or services you can adjust your budget to hemorrhage a little less and bring in a little more, with repeat custom.
Profit:
Loyal customers trust your brand product so they are less likely to avoid a purchase because of a price point. This makes them less sensitive to the price of a product or service because you have performed to a standard they see as equivocal to the value. Abusing this relationship between customer and profit margin, however, won't do you any favors. Thinking you can raise your prices because you already have people buying at XYZ rate doesn't mean they won't notice the change without impact. Considering how you provide value is a huge part of defining a profit strategy for repeat customers. Your product or service may or may not be the best on the market, that's sometimes debatable, but is your customer service or customer experience the best it can be? WIll customers choose to pay that little bit extra because of something small which costs you nothing to do, to improve their experience ordering or booking with you? There's no stone too small to overturn when considering how you can keep profits healthy.
Brand:
Your existing or previous clients work as brand ambassadors for your product or service, whether you want them to or not! The growth in UGC (User Generated Content) in marketing is a powerful tool in shaping consumer decisions. Asking for UGC and recognizing the good and the bad feedback is a big part of a well rounded customer service strategy that will serve your business in the long run. They are making referrals -- and negative reviews -- that you will never know about. That's why it's important to treat every customer equally. And to ask them about their experience with your brand or business after the conversion is complete.
Existing customers can tell you via survey or email how they feel they are being treated and what they like or don't like about the marketing or service. These insights will help influence future marketing decisions not just for future customers but for fellow returning customers or clients, also. One squeaky wheel gets the grease! If there's a common hiccup or discomfort point in your customer journey you can identify that by asking your customers about the process. Gauging how realistic the improvement or alteration is with consideration to your budget and timeline will help you reduce customer churn and grow your business slowly, sustainably and for the long term.
Summary:
Retaining happy existing customers can help with your budget, profit and brand awareness in the space. It's important to have a customer service strategy as well as a marketing strategy to help reduce customer's ordering once and never returning. Making sure that all stages of a customer journey are 'looked after' not just the initial engagement will serve your business much better in the end.
Get in Touch.
Have a question about how to keep repeat customers happy? Let us know! Write to us at liz@litirmarketing.com today.
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