Businesses put in such a huge effort to try and win over new customers that large marketing and sales departments are seen as essential for success. However, something that is often forgotten, or at least given less attention, is that cohort of consumers that you’ve already brought on board. This is only reinforced by the findings that a company has about 5%-20% chance of selling to a non-customer. But that rises to quite an astounding 60-70% for existing customers (Marketing Metrics). This is where the importance of customer loyalty comes into the picture. For This reason taking the benefits of your previous done work and loyal customers.
Take care of your existing customers
With such an easily accessible market already in hand it would make sense to ensure that pre-existing customers are retained and catered to. One of the best ways of doing this is by assessing your customers’ loyalty and needs. You can do this through Net Promoter Score Surveys or Customer Satisfaction Surveys. By nurturing your customer base and showing that you value their engagement with your business. You can achieve excellent organic growth, at a fraction of the cost of trying to attract new customers. Estimates can vary but the generally accepted ratio is that it costs 6-7 times less to retain a current customer than to attract a new one (White House Office of Consumer Affairs).
That means that with the right insights into the needs of your clientele you can cut customer churn. Coupled with attempting a replacement strategy for a fraction of the costs . Not only that but by paying closer attention to your base you can also increase revenues earned from that source. With an American Express Survey showing that 70% of consumers were willing to spend more with companies that they felt provided excellent customer service.
Customer loyalty brings even other advantages
Apart from the obvious benefits to your business from focusing on a demographic that generates greater revenues at lower costs. There are a whole host of parallel advantages you can gain from enhancing your customer relationships. Loyal customers can provide excellent feedback on the direction your company has taken or should take in the future. In other words, as end-users of your product or service. It is in their interests to be honest and considerate in their answers. Thus they become an invaluable tool for product research and development.
The takeaway; Listening to and focusing on your existing customer base and enhancing loyalty should be a core priority for every business. With this in mind, using effective surveys can get the insights you need to make a huge difference to your bottom line.