Most people see marketing as a way to create awareness for your business and to gain new customers, but retaining the customers you already have is equally as important. Here’s why you should market to retain customers as well as to gain.

It’s more cost-effective to retain customers

It can be 5 to 25 times more expensive to gain a new customer to your business than to retain one. It’s a lot more affordable for a business to have some customers who repeatedly return to purchase more of your products and services, rather than trying to find new customers all of the time.

Instead of spending your marketing budget on bringing in loads of new customers who will only purchase once, focus on keeping the customers who do come in and purchase, making sure that they come back again and again.

Loyalty

Loyal customers are much more likely to spend more and more often than newer customers. This is because they will trust your product or service and have learned its value. There is more chance of you increasing your ROI through existing customers spending more when they purchase and purchasing more often than new customers purchasing once and never coming back.

Customers who are loyal to your business are where you can increase your ROI through increased purchasing and lower marketing costs. This way, less time and money is wasted on leads you may never hear back from and instead you increase revenue through the customers who already trust your brand.

Losing customers

If you prioritize bringing new customers into your business rather than keeping the customers you already have happy, at some point, you will start to lose those customers. If special treatment is dedicated to your potential customers, such as giving them offers and free trials, retained customers may no longer have an incentive or reason to return.

Consistent and high-quality marketing towards your retained customers will help to keep customers coming back to your business, and ensure that even if you are not gaining any new customers, you still have customers who appreciate your products and services consistently purchasing from you.

For more help with your digital marketing and customer retention, click here.