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Why should businesses focus on existing customers

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Marketing to existing clientele; We come across firms that are overly focused on generating new business all of the time. If a company wants to grow, it should look for new business and consumers, but not at the expense of abandoning its current customer base. Customers that have previously purchased a product or service from your company are known as existing or repeat customers.

You’ll have to pay more for new clients. Wherever possible, every businesses should cut costs. According to Forrester Research, it costs five times more to recruit a new client than to keep one. You have a significantly better chance of making a sale if you target existing consumers who are already interested in your product or service and have expressed a willingness to buy. At some point in the future you may want to sell your business and the steps to maintain a good customer base and to get the most out of each customer as a loyal customer will be paramount. When hiring a business broker you will need to prove these details and show the value in the business so it’s a great idea whether or not you plan to sell to have this part figured out and documented.

According to studies, the possibility of converting an established client is roughly 60–70%, while the likelihood of converting a fresh prospect is only 5–20%. As a result, spend your money where you know it will make the most significant difference. This will show your company’s desire to reward loyalty benefit your entire brand.

It’s easier to sell to existing clients. They are much more likely to open their wallet or purse to your businesses again than to seek a new company to purchase from because they have previously done so once. Whether you realize it or not, your businesses has already established a level of trust with them (provided you did a decent job for them the first time!)—customers who are more likely to buy better use your limited time and resources.

According to many studies, the likelihood of a new consumer purchasing from you is between 5 and 20%; however, existing customers are 60-70 per cent more likely to do so! I know exactly where I’d like to put my money.

Marketing to existing clientele; Customers who return spend more money. Repeat consumers are more likely to buy more over time than new customers. Existing consumers spend roughly 300 per cent more, according to Metrics (2). Thanks to their growing trust in your company, your existing customer base is also more inclined to acquire your more expensive items.

Retention equals profit. Compared to selling to new clients, selling to existing customers is less concerned with price. Because your existing customers already trust you, it’s easier to persuade them to buy more of your products or services through up-selling and cross-selling.

According to Gartner Group statistics (3), only 20% of your current clients will account for 80% of your company’s future revenue. Imagine strengthening existing relationships rather than building new ones when thinking about future success and profitability.

Customers who are loyal to you advertise your businesses for free. Customer loyalty is valuable, and it can lead to more new customers. Not only is word-of-mouth advertising free, but it is also one of the most trustworthy types of advertising. Customers will always speak up, and they will always listen to what others have to say.

Because of this, a 5% increase in client retention can boost a company’s profitability by 75%. Statistics like these show that if you treat your existing clients well, you will reap the advantages in the long run. After all, your existing client base is a growing source of new customer referrals. In a subsequent piece, we’ll investigate how to retain and market your current clients.

Constantly running marketing campaigns to attract new businesses rather than paying attention to your existing customers will cost you a lot of money in the long run. While direct marketing strategies effectively attract new consumers, don’t forget about the clients you’ve already acquired.

Increased marketing costs are required to maintain the same number of clients. Thus it will save your organization money if you tap into the customers you have previously fought to get rather than spending additional money trying to fill the gaps. It’s also worth remembering that, according to Bain & Company, a 5% improvement in client retention may boost a company’s profitability by 75%.

Existing customers are already familiar with you. Selling your items to existing consumers is considerably easier than selling to someone who has no idea what your company is about. I am much more likely to buy from a firm with which I have had a positive experience, especially if they provide me with incentives.

“If you’ve done a good job taking care of your customers in the past, and your products have functioned well for them, they’re usually willing to give any addition to your product line a try,” Forbes says. Because the relationship is established, there is significantly less selling to be done.” You’ll save time using the relationships you’ve already established.

You’re familiar with their purchasing habits. You already know your existing clients are the target demographic you’re looking for if you work with them. You know they need your products and services since they’ve already purchased from you, and you may have insight into new products they should try.

In terms of marketing, most of the work has already been done for you. Because you know their purchasing history, you can try to entice them to buy a similar product from you, especially if they’ve had a positive experience with you.

Increasing the loyalty of your present customers is an excellent approach to ensure that you get the most out of every one of them. Because you worked so hard to gain your consumers in the first place, make sure you reward them for staying!