Following up with past customers is more profitable than chasing new leads.
A lot of marketers have conflicting ideas over which is more important: acquiring new leads or building on your relationship with existing customers.
Customer acquisition is popular among marketers because there is something very satisfying about gaining a new customer. Perhaps it’s because it is great to finally see a pay-off from all of the money, time, and effort that is put into marketing.
However, the truth is, it’s often better to focus your efforts on customer retention. After all, what’s the point of investing time, effort and resources into customer acquisition, only to waste the potential of their relationship once you have them on board.
What’s more better?
- Acquiring a new customer can cost five times more than retaining an existing customer.
- Increasing customer retention by 5% can increase profits from 25-95%.
- The success rate of selling to a customer you already have is 60-70%, while the success rate of selling to a new customer is 5-20%.
Attracting new customers may be rewarding, but it also often involves a lot of hard work and expense. 70% of companies say it’s cheaper to retain a customer than acquire a new one, while others have suggested that the cost of acquiring a new customer can be as much as seven times more expensive.
By automating the process of customer followup, you:
- Build your relationship with your current customers.
- Remind customers of upcoming events and offering seasonal tips.
- Get positive reviews on social media and online guides.
- Get more referrals.
- Introduce new products or services.
And it’s easier.
It’s often much easier to sell to an existing customer than it is to sell to a new one. All barriers to becoming a buyer have already been overcome. Existing customers already know you, they have decided you are trustworthy, with products or services they enjoy. 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.
That’s where CLOSEM comes in.
It acts like a gentle follow up with many pre made, customizeable messages to automatically keep you in your prospects mind, and when they are ready to pay, they pay YOU and not your competitor. Is this cheaper than trying to spend thousands of dollars advertising for a brand new customer? You bet it is.