4 Reasons Why Customer Loyalty is Important to Your Business Success
As business owners, we are constantly looking for ways to expand our business. More often than not, that means hustling to find new clients who are interested in purchasing our products and services. We spend a lot of energy and money courting these new clients, while we forget about the gold mine, we’re already sitting on: Our current clients.
We’ve all heard of the 80/20 rule, where 80% of our business is generated by 20% of our current clients. There is another statistic that you might not be aware of: 20% of our clients can generate 80% of our future business. In other words, if we are able to nurture our current clients, they will be the ones who will be responsible not only for purchasing our products or services, but also driving other people to our business in the future. Here are 4 things you should know how client loyalty can work for you:
- Improve Profits. A recent study showed that a small increase of 5% in client retention can increase profits anywhere from 25 percent to 95 percent. With a little effort on your part to develop a client retention/loyalty program, you can easily grow your business in the future.
- Decreased Marketing Costs. Businesses commonly accept that it’s anywhere from 5 to 25 times more expensive to acquire a new client than keep an old one. By improving client loyalty, you are not only increasing your profits, you’re reducing your expenses. That doesn’t mean you should not go after new clients – it just means that you need to balance it with a focus on retaining the ones that you already have.
- Existing Clients Buy More. One of the great benefits of engaging your existing clients is that their probability of selling to them is 60-70% higher than to a new customer. The reason is that you have already established a relationship with them, and they know what to expect from you and your products and services. If their experiences with you have been good in the past, they have an expectation that they will continue in the same manner, and it reduces the length of the sales process.
- Building Social Proof. In today’s digital market, potential clients are always looking for endorsements from people who have used your products and services in the past. Reviews are playing a bigger role in the decision-making process, and testimonials from your loyal clients will go a long way to solidifying your brand and your reputation in the market.
Your current clients are your most valuable asset. Treat them well, and they will continue to help you grow your business. Wearable Imaging is here to help you build that customer loyalty. Give us a call at 949-888-7837 or email us as email@example.com to set up a complimentary strategy session with our President, Robin Richter.
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