For any entrepreneur, getting a new customer is exciting. You’re working hard to build your business and anyone who appreciates that effort by making a purchase deserves to be celebrated. But often companies are so focused on acquiring new customers, they forget where the real value lies: in their existing ones.

While most CEOs are familiar with the famous stat that acquiring a new customer is anywhere from five to 25 times more expensive than retaining an existing one, they still spend the majority of their time hustling for new customers instead of focusing on their existing ones. A happy customer is the best weapon in your sales and marketing arsenal. Building an unparalleled experience will create raving fans who will not only want to remain a customer, but will also refer friends, family and colleagues, helping you bring in new customers and increasing your profits.

Creating satisfied customers should be the priority of every business. It’s hands down the most effective - and profitable - sales strategy out there. Not convinced? Consider the following...

Existing customers are cheaper to convert

As mentioned above, acquiring new customers is up to 25 times more expensive than retaining existing ones. Your existing customers know your business so you don’t need to spend time educating them about what you offer and how it works. And if they’re satisfied they often come back and purchase directly, which means you don’t pay acquisition costs. 

Existing customers are more profitable

Happy customers tend to buy more frequently and spend more each time than new customers. Bain & Company found that increasing customer retention rates by 5% increases profits by 25%. Plus existing customers are 50% more likely to try new offers you launch when compared to new customers.

Existing customers are your most effective salespeople

Research shows that 92% of consumers trust recommendations from family and friends over ads. Satisfied customers can become your most valuable advocates for acquiring new customers with significantly lower acquisition costs. 

So how can you create happy customers? How can you drive additional value from your existing customers? And how can you transform your satisfied customers into your sales team?

Create a feedback loop

The key to turning your existing customers into raving fans is collecting their feedback and - more importantly - acting on that feedback to make your product or service even better. Wowing them makes them incredibly loyal to you and this loyalty then demonstrates itself in two ways:

1. your customer continues to come back to you, buying anything you ever sell, because you not only delivered, you OVERdelivered - taking on board their feedback and giving them what they needed when they needed it

2. that same customer who first bought from you six months ago and has since bought everything you’ve launched tells everyone they know how incredible your product or service is

And this is where the magic happens: a virtuous sales circle. Friends of existing customers themselves become happy customers who then refer their friends and so on and so on. Instead of hustling day and night to acquire new customers, you focus your time and energy on improving your offer and creating satisfied customers. 

Then rinse and repeat. Continue to make your product and service even better, continue to wow your customers and your business will grow exponentially from there. 

PSST…

If you’re looking for support to drive sustainable business growth and want to accelerate your company’s performance like my clients have this year (34.9% increase in revenue, 22% increase in profits), then get in touch to book a no-obligation call to discuss working together.