Nowadays, the online market has grown to be quite competitive and overcrowded with all sorts of businesses both large and small. The fact of the matter is that to succeed in such environment, businesses fight hard for every customer they can get.
That old saying “every customer counts” has never been more true than it is today. Speaking of which, this is exactly why businesses should focus their attention on retaining existing customers. And that requires a solid strategy, to begin with. That being said, let’s have a look at why should every business have a customer retention strategy.
Customer retention boosts sales
One of the primary reasons why businesses should focus on customer retention is because it directly impacts sales. The point in fact is that existing customers tend to spend up to 67% more than new ones. The numbers speak for themselves as consumers who have already purchased your products or services in the past already know what they want and where to look for it.
Fostering retention is best achieved by incentivizing customers to come back for more. This could be anything from a coupon, discount or a promotional offer that will provide existing customers with something of value. Even sportsbooks send out promotions through trustworthy sources, such as promotion-code.com.ng, for example, and on a regular basis to ensure that both new and existing customers have something to look forward to.
It’s cheaper to retain than acquire customers
It goes without saying that acquiring new customers can be an expensive and time-consuming process. Aside from crafting marketing strategies that will grab the attention of potential customers, it costs approximately 6 to 7 times more to acquire a new customer than it costs to retain one. That doesn’t mean businesses should drop trying to acquire new customers, it just means that their resources are better spent on retaining customers they already have first.
Customer retention fosters loyalty
By focusing on customer retention, businesses can foster customer loyalty. People often confuse repeat business with loyalty when in reality, they are not the same. Repeat customer will come back because your prices suit them or it’s convenient for them, whereas loyal customers will stick with your company through good and bad.
Therefore, a loyal customer is much more valuable to a company than those who repeat their purchases ever so often. Further nurturing both retention and loyalty can be accomplished by implementing loyalty programs that will reward customers for sticking with you for so long.
Having a customer retention strategy is essential for every business these days. Considering just how competitive the online market actually is, having customers who will make frequent purchases and ensure you have a steady flow of income are of the utmost importance for business success