Winning new clients and keeping old ones are both important to your business. Keeping existing customers happy is more important, here are four reasons why.
Keeping Customers Is Cheaper
Compared to what it costs to win new customers, keeping existing customers is cheaper.
The cost of winning new business varies by industry. With the continuous rise in competition in every industry, the cost of winning new business will continue to rise as well. On the strength of this, it is more important to retain clients than win new clients.
Keeping Customers Is Easier
It is easier to keep customers returning to your business than it is to acquire entirely new ones. It’s common sense to reward the people who continually support your business when you consider it. Before a prospect becomes a customer, they go through a process of learning about your brand that will ideally lead them into a buying funnel.
Simply stated, your existing customer has tested you and found you to be trustworthy. Therefore they are more likely to do business with you again as they have built up a level of trust with your brand. No further effort is required from you except to keep your customers satisfied by consistently delivering excellent services and rewarding them for choosing you.
Contrast that with trying to win new business. Firstly, you have to do your market research, create buyer personas, pay for targeted ads, run marketing experiments, etc. This is a costly business that can take up a lot of resources across your business.
Keeping Customers Leads to Free Advertising
If you serve your customers well, they will stay loyal and use your business you again and again. As brand loyalty increases, your existing customers will start recommending you to their friends, families, and acquaintances. That’s free word-of-mouth advertising for your brand, and personal recommendations are said to be the most powerful marketing there is.
Now, compare that to winning new clients. It is practically impossible to get people who haven’t experienced your brand to recommend you. Even if they have been exposed to your brand without engaging, they’re not in a position to recommend you to anyone if they haven’t used your business, themselves.
Keeping Customers Is Less Time Consuming
They say time is money, and in business this rings true for many of us. That’s why it is wise and important to engage in activities that consume less of your time while increasing your profits.
Keeping customers is less time-consuming than trying to win new customers. You will find that nurturing and engaging with your existing customer base takes less time than it does to create a strategy that captures new customers.
Valuing the Loyal Customer
Many businesses are always in a frantic search to find new ways to win new clients while neglecting their existing, loyal customers. Winning new customers only to lose them to your competitors later is like pouring water into a basket. Ironically, keeping customers, as rightfully pointed out, can lead to new business. If you want to grow and sustain your business, then focus more on retaining customers. They are the ones whose recommendations will win you new customers as well.