? News flash: Trying to make a sale from new customers is at least 5x more expensive than trying to make sales from your old customers.
Meanwhile your old customers are many times more valuable and profitable to do business with than your new customers. So says Bain and Co from one of their studies.
Not many business owners know that trying to get new customers is more expensive than keeping the ones you have, even though your old customers are more profitable. You need little or no marketing before your old customers buy from you- they probably ❤ you already.
“So you mean I should not try to get new customers for my business? ”
Let’s think about this for a moment.
If I can make $200 from my old customers and my new customers would only care to spend $80, I definitely want to give my old customers some special treatment, since they bring in most of the cash.
The best and least expensive way to get new customers is by word of mouth (WoM), but for that to happen, you have to keep your old, loyal customers happy and consistently deliver a WoW experience to them so they can recommend you to their friends and family members with all of their hearts.
This is why every business, small and big, must cherish their loyal customers, they are the lifeblood of your business and your ultimate competitive advantage is not losing them.
Every touch point with your customers is an opportunity to build Loyalty, every sale is a chance to bring them back. This, my friend, is how you design your business for maximum profits.?
Not every time try to get new customers, it’s damn too noisy out there, so you must have deep pockets to get your message out, loud and clear. Never has attention been so expensive, so when you get it, you want to keep it, and at every opportunity give it some TLC, so it stays?
By doing this, you are inciting loyal buying behaviors and are smartly cutting down on your marketing spend through loyalty marketing, you will never have to spend so much to cut through the noise, you simply communicate your offering to your customers, they will likely take your word for it and KaChing! ?
With this, no more spray and pray marketing, every sale is your marketing, an opportunity to bring your customers back.
With Loystar, every sale brings your customers back.
Loystar is a loyalty powered POS app that helps small and medium businesses in selling their products/services and driving repeat sales.?
Getting the app is easy. It’s available on android for now, and for 60 days you can try out Loystar for free.
Like it? you can subscribe to one of our affordable plans. ➡ click here to download.
We love feedback, so send some our way, and remember don’t just sell, build loyalty.
Also published on Medium.