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With over half of small businesses spending between $5,000 to $15,000 per month on marketing, it could be time to consider whether this is an effective use of your funds, especially when there’s no guarantee the people you reach will even buy your product or use your service.
However, there is one area you can always rely on and these are often neglected when businesses up the ante on their marketing. Existing customers could be the secret to maximizing your profits. But why is it worth marketing to customers you already have?
You Can Increase Customer Retention
Paying attention to existing customers is one of the most effective ways to improve customer retention and maintain steady income streams. Your customers will recognize that you matter to them through your efforts and they will be more likely to continue using your product or service even if other opportunities come along. This foundation is perfect for building your business and ensuring better stability which can also help you focus on obtaining new customers in the future.
You Can Improve Your Relationship
Establishing and maintaining positive relationships with clients and customers can improve optics and ensure you can manage your partnership better. Customers will recognize that you are making an effort to include them in your planning, which can encourage them to explore new products with you and continue to use your business. Furthermore, this also makes it easier to establish payment opportunities. As existing customers, you can adjust your billing process using this guide to recurring billing to give them more confidence in the cost of their subscriptions or regular orders.
You Can Offer Better Deals
Many businesses only focus on new customers for the best deals. However, this can leave a sour taste in the mouths of your existing customers. Since they are familiar with your business, you can maximize their loyalty by offering better deals, especially when contract renewals come around. Since you have built trust, you can offer discounts or freebies for your experienced customers to sweeten any deals and keep them on your side.
You Could Attract New Customers
Keepimarketing to your existing customers could also benefit you by attracting new clients through customer referrals that benefit both sides. Sending marketing emails that encourage your customers to recommend your business to others could result in further discounts or even rewards for introducing someone to your company. This is often seen with banks and referrals where they will provide compensation for introducing new clients once the account details are finalized.
You Can Save Money
Why bother spending thousands on attracting new customers when you have a steady stream of existing customers who already know what you can do for them? Marketing to your current customer base can save you a lot of money since you don’t need to convince them your business is worth using. They are already aware of what you offer and will likely be excited to see a new product or service being developed. This is arguably the easiest sale you can do, so do not ignore how beneficial it could be for your small business. The money you save can then be used to develop better products and provide better service.
You Can Test New Products
You and your customers have developed a level of trust that can benefit both of you, especially when developing new products and ensuring you put the best version on the market. Since your customers are already familiar with your other products, use feedback surveys to get their opinions and advice regarding new products. They will feel more involved in the process and will happily offer guidance on where to improve.
You Can Boost Your Reputation
It can be tricky to build and maintain a reputation, especially as it only takes one wrong move to damage it. However, focusing on your existing employees through digital marketing like SEO and email, can boost your reputation as you develop a name for yourself by caring about the people who got you where you are. Other customers will hear about this and be more willing to work with you than brands that cast old customers to the side when something better comes along.
Marketing
While new customers can always benefit your business, you shouldn’t ignore the customers you already have. They are familiar with your business and know how good your products or services are. Neglecting them in favor of shiny new customers won’t do you any favors. So, if you’re trying to determine the best way to boost your profits, look at what you already have and go from there.
