Take care of your existing customers. This is the advice and battlecry of successful businessmen.
Why? You asked. There are several reasons
1. New Customer Acquisition is Expensive
This is an accepted fact.
Acquiring new customers is very expensive. You have to spend a lot of marketing to engage and earn their trust.
The challenge of acquiring new customers is to tell them to shift to your brand and leave your competition. This is a very tough proposition.
It is always very difficult to change the heart and mind of customers that are currently under the spell of your competitors.
This is the reason that you have to take care of your existing customers. They are easy to take care because they trust you. And the cost of taking care of them is less than acquiring new customers.
In one research, acquiring new customers will cost you 16 times compared to nurturing your existing customers.
2. Your Existing Customers Spend More
This is not rocket science.
If you gain the trust of your customers, they buy more from you.
The trust that they gave you is the key that allowed them to open their wallet to you and dig deeper into their pockets to purchase more of your products and services.
3. Your Existing Customers are Your Word-of-Mouth Marketers
You existing customers are your brand evangelist.
They promote your products and services to others. They defend you because they believe in you.
In Marketing, the most effective form of marketing is word-of-mouth marketing. It is free. It is powerful.
People trust only people they know and respect.
Your brand evangelists on average have 250 friends. Imagine what they can do in helping you grow your business.