Can you guess what the word of the day is? That’s right, it is Retention. You know what it means, but is your business doing everything it can to retain the customers who visit you? In order to grow a business you must do two things, acquire new customers and keep them around for a LONG time. Yet, studies show that businesses are over 3x more likely to focus on acquisition efforts compared to retention efforts. This post will focus on why retention is important necessary CRUCIAL to your business plan.
Retention Makes More Money Honey
According to estimates, around 80% of future revenue for businesses come from just 20% of existing customers. And it is not hard to figure out why, existing customers are easier to sell to. They are comfortable, they know your business. The likelihood of converting an existing customer to buy from you again is 60-70%, while the likelihood of converting a new prospect to purchase is only 5-20%! Are you playing the odds correctly? By focusing your resources to improve the way you retain customers, your company has the potential to generate a significant amount of revenue. The more you retain, the more money you have to spend on gains.
Retention Has Less Cost Boss
The cost of customer acquisition (CAC) have been estimated to cost 4 to 10 times more than the cost of retaining an existing one. Not to mention that existing customers are familiar with your business and require a lot less hand-holding and understand how to go through the process and where to get help to solve any problems they may encounter. As a result, existing customers are a lot cheaper to provide service to. And your existing customer base is a golden source for referrals, therefore efforts you put into retention will help grow your customer base. Keeping customers around for the long haul means you’re delivering a great experience and you can turn your happy customer’s success stories into case studies to bring in more prospects.
Retention Is a Marketing King
Not only do your retention efforts generate revenue, they also give you a lot of insights on how to improve your marketing effort to acquire new customers by letting you know what content you need to communicate to prospects, and who you need to be targeting.
Welp, How Does DeliveryMaxx Help?
By now, you’re probably familiar with many aspects of the DeliveryMaxx program, (If not feel free to check out some of our older posts or http://deliverymaxx.com/why-deliverymaxx.html) but are you aware of the DeliveryMaxx tools that allow you to lead an unparalleled focus on retaining your customers? Not only are all of your customers being followed up with messages congratulating them on their purchase, reminders to provide a review of their experience online, Happy Birthday wishes, and additional messages on the anniversaries of their purchase, you also have the ability to take it a step further with custom video messaging that only takes a few short moments to create. You or your staff can film short video clips that will be sent out thanking them, wishing them a happy birthday or holiday, reminding them they have a service date coming up, and more! You can create custom messages with a highly personal touch keeping you and your business in the front of their minds for years to come.
So, why are you still reading this? Open up the DMAXX App and start building a lifelong relationship with your customers today!