Everyone has customers that they once saw regularly, and then suddenly, without warning, and often you even noticing, they simply stopped coming in. It’s frustrating, because customers are hard to come by, and if they like your product and service – why would they just disappear?!
Most likely, they just forget about you.
According to research by the Rockefeller Group, 68% of customers stop coming to a business because they perceive that the company is indifferent to them. This highlights the critical importance of showing appreciation and maintaining a strong relationship with your customers to prevent them from becoming “lost.”
Think about it this way.
If you were dating someone and they never called, or texted, or invited you out, how quickly would you start looking for someone else to date?
As a small independent Business Owner, you know the thrill of acquiring new customers. Each new face walking through your door is a testament to your marketing efforts and the appeal of your services. However, while attracting new customers is essential, there’s an often overlooked goldmine right under your nose: your existing customers.
The Cost of New vs. Existing Customers
Acquiring a new customer can cost at least five times more than retaining an existing one. Moreover, the probability of selling to an existing customer is 60-70%, while the probability of selling to a new prospect is only 5-20%. These statistics highlight a critical point: nurturing your existing customer base is not just more cost-effective; it’s more profitable in the long run.
Our Success Story: Re-engaging Lost Customers
Let’s illustrate this with a real-life example from one of our clients. This client had a group of customers who hadn’t visited their business in a while. We categorized these customers as “lost” and decided to take action to bring them back. Here’s what we did:
- Crafted a Personalized Email: We wrote a compelling email tailored to these lost customers. The message was friendly, reminded them of the positive experiences they had previously, and included a special offer to entice them back.
- Exclusive Offer with a Short Expiry: To create a sense of urgency, we offered a special gift that was valid for only three weeks. This limited time offer encouraged immediate action.
- Targeted Outreach: We sent this email to the selected group of customers who hadn’t visited in a specific period.
The results were outstanding! We reactivated 191 customers who responded to the email and took advantage of the offer. This initiative generated $6,735 in sales. Not only did this campaign bring in immediate revenue, but it also reignited the customers’ interest in the business, making them more likely to return in the future.
Why Retention Matters
- Enhanced Customer Loyalty: Regular communication and special offers remind your customers of why they chose you in the first place. This fosters loyalty and encourages them to keep coming back.
- Higher Lifetime Value: Loyal customers tend to spend more over time, and their lifetime value significantly surpasses that of new customers.
- Positive Word of Mouth: Satisfied, returning customers are more likely to recommend your business to others, bringing in new customers organically.
Strategies to Keep Customers Engaged
- Personalized Communication: Use emails, texts, and direct mail to stay in touch with your customers. Personalize your messages to make them feel valued and appreciated.
- Loyalty Programs: Implement loyalty programs that reward repeat visits. These can include discounts, points systems, or exclusive deals for members. It also create a customer list for you and allows you monitor their actions.
- Regular Updates and Offers: Keep your customers informed about new products, upcoming events, or special promotions. Regular updates keep your business top-of-mind.
- Feedback and Improvement: Encourage feedback and show that you value their opinions by making improvements based on their suggestions. Then you can use their positive comment to get more online reviews, which will garner more new customers.
Don't Lose Them!
In the competitive world you operate your business in, retaining your existing customers is more important than attracting new ones. Our client’s success story demonstrates the power of a targeted re-engagement campaign and the significant impact it can have on your business’s bottom line.
Focus on customer retention and nurturing those who already know and like you, you’ll build a loyal customer base that will support your business for years to come. Start planning your next customer re-engagement campaign today – the results might surprise you!
Our program can do all of this and more for you. Click the button below for a FREE Marketing Strategy Session to have it all customized and automated.
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