In this article we will discuss why it can be more beneficial to maintain your current and loyal clients and grow their loyalty instead of acquiring new ones. This, to be honest, won’t be panacea for you business, but it might be really useful to think about it.
Most of businesses, including you, probably think that the growth of their organization depends only on acquiring new clients, so it is obvious that you strategy focuses on that. And this is done by most (your opponents included).
That isn’t, actually, bad, but… Depending on which study you believe, and what industry you’re in, acquiring a new customer is anywhere from five to 25 times more expensive than retaining an existing and loyal one.
Easy. Try to think how much it costs to acquire 100 clients to your e-shop (because of big competition in the market, the price of advertising changes nearly everyday), than calculate probability of these clients buying from you when visiting your super duper site for the first time and for the unbelievably good price.
Unfortunately, there are only a few of such enthusiasts that will buy your product immediately after seeing in for the first time. You will be lucky if only couple of people will do it out of hundred. Reality check – new clients aren’t excited to buy from you, because it is their first time seeing you, they aren’t sure about the quality of your product and service and they will compare your deal with others’. After going through all these steps, there will be just a few people out of one hundred. At least your visitor count will look promising.
Sure, there are a lot of ways to keep those 100 customers and make them loyal – Google Ads, Facebook remarketing, pop-up messages, “offer your price” method, huge discounts, landing and squeeze page, funnels and many more.
And I am pretty sure you are using some of them. Maybe even all of them – if this is the case I applaud you.
But let’s get back to loyal customers – those, who already trusted you and used your service and are happy you did a great job.
When was the last time you communicated with them?
When was the last time you reminded them about yourself or shared you insights on about your products?
Probably you forgot some of those. No worries, because even those who didn’t stops at one simple obstacle – their messages aren’t noticed, and, hell, are ignored.
These days digital world has a lot of noise – it’s like a helicopter in your bedroom at 4 o’clock in the morning. This leads to natural development of ignorance or you just simply install some kind of ad-block. And there is no way avoiding it.
Ads are everywhere – Youtube, Facebook, Forbes – they are so annoying that it makes us to stop reading, even if it is really interesting what Kardashians are up to.
This leads to increased costs in advertisement in order to shout-out all the noise.
So, what should you do? More ads? Yes, it can help, but here comes price, that you have to pay in order to reach your customer. And it increases as fast as food prices.
There is one more way to achieve, which isn’t really popular. Abracadabra – apps.
Big brands, even by having huge budgets, noticed this channel quickly and targeted loyal clients – those, who are already trusting them.
When we talk about communication with your clients, apps are the way to go in this serpentine mountain roads reminding world, in which you can never be sure what is waiting you around the corner.
Apps allows your clients to reach you quickly. Push notifications can reach up to 99% of your users. When comparing this with e-mails, which reaches 10-15% and open rates up to 10%, you can notice why mobile app can quickly become your most effective tool communicating with your clients. Recommendation system will motivate your clients to shout “They are cool – download their app!” into their friends ear.
Close your eyes and imagine (I’m joking, read with your eyes open): by having your logo in their devices, clients will be forced to choose between opportunity to buy from you or go to the noise and find others. Your client will also think about you when planning their next shopping list, because he already trusts you. And having logo in their screen works on subconscious level (science!).
According to Criteo, apps users, when compared to mobile browser users, are twice as likely to return to your store within 30 days.
Now let’s talk about ways to increase loyalty (not the marital one) of you clients by using your app:
Everything that we poured from the depth of our hearts and brains into this article help you increase your clients’ loyalty and boost their return rate. While you are thinking on how to acquire new customers think about how current ones can help you increase your sales.