Did you know that it is 6-7 times more expensive to acquire a new customer than to keep an existing one? In fact, studies show that the probability of selling to an existing customer is 60-70%, whilst the probability of selling to a new prospect is as little as 5-20% This is because it takes a lot of time and effort to convert a lead into a customer. No matter the product or service, there is a series of steps that are required to convert a lead to a customer. Your marketing strategy should be designed to easily journey your leads into a sales cycle that will lead to a sale.
With existing customers, because you have established know, like and trust, and as long as you deliver on your brand promises, the barriers to selling have been removed, and it should take much less convincing when you offer new or repeat product and services. In addition to re-purchasing from you, customer loyalty can also result in further customer acquisition through referrals and recommendations. This is why the sales cycle does not end when you close the sale, but rather after you've asked for referrals, feedback and recommendations.
Word of mouth advertising remains to be the most credible forms of advertising because satisfied customers will always talk, and they will always listen to other fellow customers. So never underestimate the value of a positive customer experience.
Another guaranteed way to speed up your sales cycle and grow your customer satisfaction is to focus on your community engagement. Building a community of customers who are engaged and interact with your business is proven to affect bottom line. Do you know if your customers are engaged enough with your content? If not check out our community engagement quiz.
So I must ask, if you are not spending time to engage your existing (and past) customer base, how much money are you losing? (Hint: it could be from 5-90% increase in profits.)
If this has helped, why don’t you share this article with others who might benefit from it. Have you read any of the books we mentioned before or have a book or two that we’ve missed from the list? We’d love to hear from you! Get in touch or let us know what you think by commenting below.