Teacheting with Proffy T: Customer Retention Rules!

Опубликовано: 05 Март 2020
на канале: Strategic Glue Small Business Marketing, Branding

This brief video covers three top benefits of customer retention and why it makes sense to revenue and profitability.

Hi, I'm Terry Sullivan or “Proffy T” as many of my students call me. Welcome to Teacheting where I hope to teach you rather than just
market to you. The last two Teacheting episodes, we’ve discussed customer experience and customer engagement. Today, let's talk about the often unsung hero of revenue and profitability, customer retention.

A lot of time, effort, and resources are spent on customer acquisition - getting new customers. But, customer retention is about keeping the customers you have. What's more, most businesses can sell additional products and services to grow existing customers. In this Teacheting lesson, we’ll cover three sticky points to ponder regarding customer retention.

Customers are the lifeblood of a business including new, existing,
and internal customers. A significant amount of marketing and sales is spent on lead generation and customer acquisition. But, are we making similar efforts to continue earning existing customers’ business? Are we creating engagement and a customer experience that's intentional and rewarding for them? Let's look at three compelling reasons to focus on our existing customers.

A sale to an existing customer is typically more profitable because you don't have the customer acquisition cost - the sales and marketing dollars associated with acquiring new customers. Let's say you land a new customer and sell a $500 product that cost $250 to make and let's assume your customer acquisition cost is $100. You profit $150 on that sale. Now, let's say you sell a $500 product to an existing customer, but you don't have to spend that additional $100 acquisition cost. Now you profit $250 dollars on that sale or 67% more than if you had made the sale to a new customer.

Existing customers are usually easier to sell assuming you have upsell
and cross-sell opportunities with current customers, why not sell them time and again? You've already sold them! Assuming you've done a great job with your customers, they should be easier to sell. New customers - well, they’re the shiny new object and existing customers - sometimes they know our warts and scratches. But, if we've done a good job with them, most customers don't want to go elsewhere. Your competitors know a great relationship is hard to compete with.

Customer retention is about keeping and growing existing customers, but let's not forget other potential value they bring. Existing customers should be our biggest brand advocates providing referrals, testimonials, reviews,
and spreading the news of how great we are. But, they're not going to do those things simply because they bought something from you. Relationships are a two-way street and take work. Customer retention is critical to revenue, growth, and profitability but retention takes time, effort,
and resources - investing in that relationship. Maximize the investment
you've already made in your customers to continue making a return on them.

If you need help with strategy for your business, check out strategicglue.com. If you like this video, please leave a comment and share with others. And, if you have suggestions for future Teacheting episodes,
please leave your suggestions in the comments as well. Thank you so much for watching.

Смотрите видео Teacheting with Proffy T: Customer Retention Rules! онлайн, длительностью часов минут секунд в хорошем качестве, которое загружено на канал Strategic Glue Small Business Marketing, Branding 05 Март 2020. Делитесь ссылкой на видео в социальных сетях, чтобы ваши подписчики и друзья так же посмотрели это видео. Данный видеоклип посмотрели 41 раз и оно понравилось 4 посетителям.

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