Are you running an e-commerce website? If so, what are the things that you have employed to ensure that a lot of people are going to your site and buy stuff from you?
I am pretty sure that you were busy with your efforts on customer acquisition. I mean, that is always the first thing that online entrepreneurs must do, right?
However, how is it going for you? Are your new customers actually going back for more? If the answer is no, then you are probably focusing on the wrong things.
You see, entrepreneurs often focus their marketing and business strategies on enticing new people to come to their business websites and buying from them. In other words, they are fixed on customer acquisition and nothing else.
Well, that is good for first-time business owners who are still relatively new to the industry, but what about those that have been there for years? Should your marketing strategy still be focused on getting new customers?
In this article, I am going to tell you why it is more expensive to win new customers than to retain your existing ones.
It is More Expensive to Get New Customers
What do you do in order to get new customers? Well, your marketing and promotions team would have to employ a lot of measures such as following a good SEO strategy, getting targeted ads and focus them on your audience, among many other things.
In order for you to do all those things, you will have to spend a lot of money, which means that you could be spending thousands of dollars just to attract new customers.
Although all businesses would have to think about customer acquisition, in the beginning, focusing solely on that can be detrimental to any business.
Retaining customers is much cheaper because you no longer have to market and promote your products the same way you did in acquiring them.
Your efforts should be focused on making sure that people actually stay with your company and buy products from you.
It is Easier to Satisfy Your Existing Customers
Retaining your customers is actually quite easier than getting new ones. You can employ a customer loyalty program wherein you incentivize their every purchase from here on out.
You can even send out follow-up emails to encourage them to buy your products again. For example, say that you supply men’s grooming kits and you also sell those items separately, that means that, at some point, your customers will run out.
By using your website’s CRM, you can track your past customers that haven’t revisited your website for quite some time. You can send them emails reminding them that they might run out of stock and perhaps throw in some discounts to incentivize their repeat visits.
So as you can see, it is not only cheaper to retain your existing customers, but it is also quite easy for you to welcome them back.