The Importance of Existing Customers & How to Keep Them Wanting More
There is a misconception that has been coming up with some of our clients. They are mostly focused on getting new leads and conversions and advertising their brand in front of new potential clients.
Don’t get me wrong, increasing your conversions is always a good thing. However, when we ask the question, “what about the clients who already ordered from you?” they usually raise an eyebrow.
We usually ask that question to clients that appear to have stopped paying the necessary attention to their existing customers and are focusing too much on converting someone that may not come back.
Existing clients are more important than people who have never bought from you. So let’s jump right into it and give you a few tips to keep them wanting more.
A customer that sticks around is happy with what you offer
If a customer buys from you multiple times, they are clearly satisfied with you. Be it your products, services, or the overall experience your company provides; a returning customer is a happy customer.
Why does this matter?
You not only have a customer that is willing to purchase your products continuously, meaning steadier cash flow, but they are likely to refer you to friends and family. How many times have you seen people share their experiences on social media or on provide reviews? People like sharing the love, especially with those that might enjoy buying from you as well!
In other words, existing customers may market you to your potential target market for free! Someone invested in your brand or product line is more likely to offer beneficial feedback than someone who has unsatisfiable expectations.
If someone likes what you offer and buys it more than once, you are doing it right. They reflect your position as a brand that you can use to grow even further.
Existing customers make up for those that don’t stay
To put it simply, there is a certain cost of acquisition for every customer. The truth is, unless you are selling a high-end product, you do not make a profit on the first purchase. If a customer doesn’t return for more, you are facing potential losses and a lower ROI.
Existing customers make up for this! With every new purchase they make, they are helping you cover the costs of customers that don’t buy from you or don’t return for more after their first buy. Customers tend to spend more on each successive purchase, which is even more reassuring of how much value they provide to your profitability.
More and bigger orders per customer bring costs down. Many old customers can return by using cheap or free marketing channels such as social media, SEO, and email marketing campaigns. This means that the cost of bringing them back in to spend more is relatively lower.
Apart from that, money from existing customers can allow you to increase the budget used in acquiring new customers. Spending well on new customers translates into quality leads that convert into valuable customers.
From a process optimization perspective, those who know how you operate are less likely to make mistakes with you or have any trouble during the buying process. Things like picking the right color, knowing your shipping costs and timeframes, and handling refunds all become less likely to happen with existing customers, if at all.
How to keep them coming back
Now that you better understand the value of existing customers (or if you just came looking for this section specifically), let’s look at a few retention strategies to ensure they keep coming back.
1. Consider feedback
You must consider feedback at all times. Sure, you might not always like what some dissatisfied customers have to say, but always take it into account. This is especially important when existing customers had an unsavory experience or want something new!
Take them seriously and show them you care by living up to their expectations.
2. What are your star products?
Some products are bound to attract more customers and drive higher loyalty than others. Promote them more and place them higher on your webpage. Invest in better visuals and ads for them.
3. Recognize an existing customer’s value and reward them for it
They are coming back month after month to spend money on you. Recognize them!
Provide them with VIP experiences, discounts for returning, free samples, pre-order bonuses, etc. It feels good when someone puts effort into making your experience better. Pay them back by going the extra mile for those who are loyal.
4. Engage. Engage. Engage.
So they bought your product, and you sent them a box. That’s it?
Providing something extra to make them engage with you builds sturdy loyalty. Follow up by asking them how they liked the product, actively seek their feedback and opinion. Help your customers out by providing extra information about using your product better, so they fall in love with it and return for more.
5. Pay attention to your better marketing channels
Some of your marketing channels bring in more loyal customers than others. A channel doesn’t mean much if they get 10,000 leads but only two purchases from you (yes, I’ve seen it happen). Either re-target that channel or focus on the one that brings you 100 leads and as many as 80 buy your product.
Existing customers are a valuable asset to your business. They represent the core of your consumers that practically provide sustain and steady cash flow, making up for acquisition costs, giving healthy feedback about your products, market your brand to potential buyers, and more!
That isn’t to say that new customers shouldn’t be given any love. Divide your resources to engage both groups without ever losing focus on the value that each one provides.
I hope you found this information useful and are now better equipped to engage with loyal customers and keep them wanting more. If you are interested in learning more strategies to boost your sales and create customer loyalty, be sure to check out our blog. We post regular content regarding digital marketing, SEO, copywriting, web design, and more!
Mrkt360 is a marketing and SEO agency located in Toronto, Canada. We specialize in SEO services and digital marketing solutions. If you are looking to increase your conversions and improve customer loyalty, be sure to schedule a free consultation with one of our specialists today!