Companies spend so much time trying to conjure up new business that they forget the secret weapon to generate more revenue: existing customers. Studies estimate that the costs of acquiring a new customer is 25x compared to keeping an existing one. And increasing retention rates by just 5% can lead to an uptick of 95% in revenue.
So, it seems like a no-brainer to focus on your existing batch of valued customers, instead of overemphasizing new faces. To really maximize your profits, here’s how you can leverage your existing customer base for increased revenues.
Writing Thank You Cards
Let’s start with something your fancy digital marketing agency will probably never suggest: writing thank you cards. It’s a tried and tested method that works, yet companies have started ignoring old school strategies in favor of snazzy social media tactics.
Look, we’re not saying that platforms like TikTok and Instagram don’t work. They do. But it’s not an either/or question, the best avenue is to combine strategies for the most effective results.
Recurring Revenue Models
Platforms like Spotify, Abel & Cole, and Mindful Chef work so well because they operate on a subscription model. This means that instead of buying a product or service as a one-off, customers pay on a weekly, monthly, or yearly basis.
This can work extremely well, depending on your product line-up. Even if you’re not running a SaaS setup, there are creative ways you can make this strategy succeed for your business.
Keep In Touch with Customers
Once you make that initial sale, don’t forget about your customer. Treat each individual order as a new opportunity to create relationships. The best way of doing this is keeping in touch with your existing customer base.
Don’t just send a regular newsletter. That’s what everyone does. Instead, go a level up by getting in touch with customers individually. Or at the very least try and customize your mail shots.
Instead of being overly salesy, approach your customers as individuals. Ask them if they’re happy with their purchase, whether there’s anything you can do to improve service, and whether they need anything else. Don’t be pushy; customers will see aggressive sales tactics coming from a mile away.
Collaborations and Partnerships
If you don’t have any other products or services to offer your customers, why not think about partnering with another business in your industry? If you sell shirts, find a company that sells slacks. If you sell fruits, find a veggie partner. You get the idea.
The key is finding partnerships and collaborations with companies that share a common customer base. If you’re a vegan foodie company, partnering with a local butcher isn’t going to work.
Create High Quality Content
You will always see guides telling small businesses to create content, whether it’s on a company blog, social media, or elsewhere. The problem is that this tends to result in absolutely terrible content that will only serve to put people off.
Instead of posting daily and without a proper strategy, focus on quality instead. Make sure social media posts have nice branding and follow guidelines. Be professional.
Another thing you can focus on is creating authoritative content that helps people. Don’t focus on selling your product, but show why your company is an expert in the field, why consumers should trust you. This will naturally lead to greater sales over time.
Another advantage of creating great content is that Google will reward you in the long-term. Instead of low-quality or AI-driven bits of text, invest real time and effort to create valuable content for users.
If It’s Broke, Fix It
Businesses usually fail with their marketing strategies because they don’t test, test, and test. Focus on A/B testing and conversion rates to see which sales strategy is working best for you. Filter the low-performing funnels and ditch them, refining what’s working.
The key is to approach your marketing on existing customers with a statistical and methodical approach. Don’t just throw things at the wall hoping something sticks, but instead analyze what’s working (and what isn’t!).
Finally, keep your bread and butter at the top of your priority list. Your product and service is what keeps people coming back. If your standards start to drop, not even the best marketing campaign can save you.
