While drafting a marketing plan for day spa, I found that my efforts were divided between targeting new customers and targeting existing customers and wondered how to prioritize. Did you know that it costs 5 to 8 times more money to get a new customer than it costs to get an existing customer to return?
If a business spends all of its time targeting new customers it may actually damage its reputation with its existing client base. It is a fact that 68% of all businesses lose clients NOT because they were dissatisfied with the product or service provided, but because the customer experienced a lack of interest from the company. They felt ignored and unimportant.
What can a business do to get current clients to come back more often and to spend more money when they do come back? That’s where the value of social media and email lists can be monetized. Your Facebook fans and your client email lists can pay huge dividends if used properly.
- Offer promotional deals to both new and existing customers. If a business runs a Groupon promotion targeting new customers it is wise to offer a similar deal to existing clients. It’s a feel-good effort.
- Always know your customers and what attracted them to your business from the start. Understanding their motives is half the battle in getting them back in the door.
- Make a great first impression – a strong welcome is essential to getting off to the right start. Ask open-ended questions and listen.
- Focus on creating a lifelong customer. Typically 20% of a business’s customer base brings in 80% of their business. Think long term and show your appreciation.
- Be the topic of conversation – the value of going viral is what social media is all about. Don’t be afraid to do something that customers will talk about for a long time.
- Always strive for excellence. Keeping raising your own bar in order to stay ahead of the competition.