Did you know to grow a business, you need a successful sales strategy that’s twofold? Avoid focusing your marketing budget just on filling the pipeline of prospective customers. Leave a third or more of it to attract sales from your existing customers. Leverage this two-pronged approach to growing your sales, and you’ll see your business boom.
Returning Customers Fuel Revenue
According to one statistic, all it takes to see your financial picture improve by 10% is to get 1% of your existing customers to buy more and regularly. Getting them to come back just one time has the power to exponentially increase your revenue. Imagine the ROI of an email marketing campaign to existing customers who offer a discount on the next item!
Here’s another bit of market wisdom that points to the value of customer retention: You should be able to count on about one-fifth of your present customers to be responsible for generating 80% of your future earnings.
Furthermore, it’s a lot less expensive to get repeat customers to come back than it is to continually search for new business. Research indicates that it costs 25 times as much money to advertise to new clients than to entice previous customers to come back.
Loyal Customers Create New Customers
Of course, you would probably appreciate having a mix of old and new clientele for your business. Thankfully, you need not fear that focusing on customer loyalty will keep your company from growing. That’s because loyal customers have a tendency to become brand ambassadors. They become the ones who drive new business toward your doors.
When their friends ask them to recommend a provider for the product or service that you offer, your name will be right at the top of their lists. There’s a good chance that their friends will listen to what they say. In fact, people are 92% more likely to respond to a friend’s advice than they are to a company’s advertisements.
Effective Loyalty Programs Are Key
It’s clear that if you want to increase and expand your business and your earnings, you have to encourage customers to return time and again. Loyalty programs are designed to promote such behavior.
Loyalty card programs are one of the best-known approaches to encouraging repeat business. Typically, making purchases allows customers to accumulate points, which can be redeemed for rewards.
Businesses that value customer retention must invest in keeping their loyalty program at the forefront of customers’ minds. Online account management is one of the best customer loyalty trends because it allows participants to keep tabs on their rewards.
Effective loyalty programs must provide rewards that appeal to customers. In general, customers love free things, so giving small gifts as a reward for purchasing is a wise move. It’s also smart to give customers variety by changing up the available rewards from time to time. This keeps customers coming back to see what new surprises they can earn through their loyalty to your brand.
One-and-done customers aren’t the secret to business success. What you need are loyal customers who will return repeatedly, and effective loyalty programs can help you achieve that goal. So how can your business improve the loyalty of its customers? Start with engaging the right team.
Understanding the intricacies of boosting customer loyalty and targeting the right audience without burning through your marketing budget takes know-how, training and experience. For this purpose, it’s best to hire trained professionals who have made marketing their career.
Hiring experts who have the work experience and have also done an online MBA no GMAT required is the perfect starting point to getting the right customer loyalty program underway.
Your business will be able to leverage your hire’s work experience and academic credentials to experiment with theoretical concepts in real-life scenarios. One engagement may not be enough, but it will be a good starting point. Your business can always use freelancers to help out during busy times, including creating customer loyalty marketing campaigns.
Every company must grow, or they’ll go backwards. The goal of your marketing team is to bring your customers closer to your business.
Use customer discovery tactics to continuously adapt and learn about your target audience.
Applying digital marketing strategies to pull existing customers back to your business is fundamental to taking your business to the next step.