This is, in effect, what many marketers are telling their base of existing loyal customers. Tagged to the end of the radio ad (and sometimes said very quickly so you might not pick it up) or in the small print of the TV, print or digital communication (and sometimes so small that you miss it) are the magic words; "for new customers only". Meaning existing customers are not eligible. Your loyalty doesn't count. Sorry.
Why is this? Why do many marketers put more emphasis on acquiring new customers than they do retaining the ones they already have? It's not because it leads to better results. Most research studies report it's about ten times cheaper to hold onto an existing customer than it is to replace them with a new one. And there are other benefits.
Loyal customers will sell your product far better than you could ever sell it yourself. Word-of-mouth has always been (and still is) the most influential form of communication and loyal customers have so many ways in which to spread the word and win new customers for you. And, if you can build loyalty into the customer experience, you run a far less risk of your customers being wooed by your competitors' fancy "for new customers only" promotions. You will get to benefit from your customers' life-time-value.
Although it is industry-dependent, many organisations lose between 20%-50% of their customers each and every year. Instead of trying to stop this from happening, by rewarding them and earning their loyalty, they look to replace them with expensive new customers. When really, at best all they are doing is renting new customers for a while. Yes they win some new transactions, but a focus on loyalty results in the creation of life-long fans.
You would never tell your existing friends they are not as important to you as the new friends you're trying to attract. (Well, maybe you would, but that's a totally different blog post.) Here's the point; acquiring new customers is a costly business. I'm not saying you shouldn't do it; I'm just saying that, once you win them, you have to make every effort to keep them. As well as asking 'how can we win more new customers', ask yourself 'how can we reward the customers we already have'. Give them a reason to keep coming back. Develop such strong ties that they don't even consider switching to your competitor. And for God's sake reward them. They are, after all, the only customers you have right now.
Follow me...
No comments:
Post a Comment