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Why Pivot Marketing Strategy from New Customers to Loyal Ones?

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Why Pivot Marketing Strategy from New Customers to Loyal Ones?

Why Pivot Marketing Strategy from New Customers to Loyal Ones?

The sole purpose of marketing is to increase the revenue generation of the business. What is the benefit of a marketing strategy that doesn’t bring profit? But sometimes your marketing strategy is perfect and still, you don’t see any uplift in profit. This is one major issue businesses have every now and then.

The prominent reason behind this failure is focusing the wrong customer group. Many businesses tend to hunt for new customers while according to researchers old customers are the key to profit. If you are one of that 63% of businesses who think that targeting old customers comes second to new customer acquisition then, here are some facts:

The Customer Swing: Imagine you have old customers stacked up at one end of a swing and on the other end you want to pile up new ones. Now old customers are those who are already familiar with your services and so they are easy to attract. But to attract new customers you will have to design various strategies and go through more headaches.

Money comes second: When you are targeting new customers remember new customers, on the other hand, would love to go for a cheap rate if they can find.  And in comparison, old customers value your services more than money. Statistics show that chances of new customer buying from you lie from 5-20% which are quite low.

Free Marketing: The loyal customers you have already know your work and services so they spread the word for you free of cost. They also refer your services to friends and family without you even spending an extra penny. Research says, your happy loyal customers are 70% more likely to do your free of cost publicity.

Additional Sales: Suppose you have got a new customer for one item but selling another item to him along with the first one would be a difficult task. New customers trust your services less and hence prefer to use them less. But old customers are easy to convince to try your other services as well. Statistics say making an additional sale to an old customer is 60-70% more likely.

Apart from above-mentioned points, acquiring new customers cost you more in terms of money as well as in effort and time too. Businesses that focus their marketing strategies on loyal customers get more profit than ones who focus on new ones. So it is best if you focus your marketing schemes on your loyal customers more than fetching new customers.

Also read: What To Look For In A POS Software For Your Repair Shop?

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