Getting More Values from Your Existing Customers
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Acquiring a new customers can cost five times more than retaining an existing customer.
Nurturing existing customers is more valuable than constantly acquiring new ones. In the long run, a loyal customer can bring more profit and value to your business because they are likely to repurchase, to try a new offering, and to refer your business to their friends and family.
Getting this word-of-mouth marketing is very powerful, which is why it’s crucial to maintain a strong relationship with your past and existing customers.
1. Know Your Customer
For brand owners, retail audits, including product availability to the store level has become increasingly important to maintain company competitiveness. This data not only shows your product information on the market (product pricing, planogram), but also what customers are actually buying (in-stock level). Therefore companies must start looking for ways to collect and monitor in-store data.
2. Nurture Your Customer
Increasing customer retention rates by 5% increases profits by 25% to 95%, according to research done by Bain & Company.
The best way to nurture customer relationships and loyalty is to reward them for it. For store owners or resellers who purchase consistently, principals/distributors can offer exclusive deals, personalized discounts, gift vouchers and set up a loyalty program.
3. Determine What Keeps Customer Going Back
To determine which nurturing campaign works best, c-level executives, managers, and data analysts need to have comprehensive business insights to analyze data performance. This could be in the form of data visualizations, dashboards, and reports.
4. Adapt Strategy to Fit The Market
After knowing detailed information about your customer, you need to develop strategy and implement it effectively. Some tips include educating the team why the need for a new strategy for the same customer, and convincing the team that it will lead to more success.
Developing relationships with your customers doesn’t have to be overcomplicated, you can do it by putting a goal in place, implement the best solution, and integrate it to your programs
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*this article is originally posted on our May newsletter.