(Why an existing customer is way better than a new one)
I’d bet you a lifetime supply of pizza that (or anything else for that matter) if you have been in business and have studied marketing at more than a superficial level, that you’ve heard the cliché that it is seven times easier to sell an existing customer than it is to sell a new one.
Depending on your market in can be higher.
According to one of the world’s most highly paid copywriters (actually getting paid to write copy, not selling products with his copy) Clayton Makepeace:
“Existing satisfied customers are about ten times as responsive as cold prospects.”
“So why wouldn’t you be willing to spend FOUR Times your cost of acquisition cost to keep them.”
You are still ahead because your existing customers are so much more responsive.
That means four times your acquisition cost can be invested each year to keep your customers happy, responsive and looking forward to receiving marketing from you.
You can do this all sorts of ways:-
- Provide high value non-sales driven content
- Invest in gifts just for being your customers such as:-
a.) Customer appreciation nights
b.) Any sort of unrelated gifts that would be appreciated by your market – they would see as ‘Cool’
c.) Free trial of use of your products
d.) And so on - Lost customer reactivation campaigns
As long as your customers remain responsive why wouldn’t you try really hard to keep them? It takes time to get a new customer to become really responsive to your marketing and to build up a relationship as strong as your have with many of your high value existing customers.
As part of our newsletter suitability audit we can help you work out what it makes sense to spend on customer retention vs. their lifetime value. To arrange a newsletter suitability audit call 1300 120 006 or else go to www.newslettermarketingsystems.com.au/get-started We are looking forward to helping you get more out value out of your existing customers.