Whether you’re in e-commerce or retail, your customers are your undisputed gods. The dilemma that a lot of business owners face is: should I focus on acquiring new customers, or should I pamper my returning ones?
There is no easy answer to this question.
Ask any e-commerce expert and they will tell you both are important. But, one has a definitive edge over the other when it comes to your business health.
Let’s find out more on the matter.
Who are returning customers?
They are the ones who have made more than one purchase from your e-commerce or retail business.
Research shows that such customers have a 27% chance of buying from you again after their first purchase.
Truth is, retaining an existing customer will cost you five times less money and effort than it takes to acquire a new customer. You have to invest 16 times more money to make your new customers spend as much as your repeat customers.
Here the top reasons why returning customers are invaluable:
Returning customers save you a lot of time, effort, and money. That’s why you cannot falter in your relationship with them.
On the other hand, acquiring new customers is the only way of creating a customer base for any business. You cannot have repeat customers if you do not have prospects making their first buys.
New customers are indispensable to your business, because:
So, new customers are vital to your business growth. They too cannot be disregarded in any manner.
Here’s a startling fact for you: 60-80% of customers who made a purchase from your business and were satisfied with your service might not return for business. One-time customers exist. It’s upon you to reconnect with them and make them repeat customers.
What is imperative for you to understand is customer relationship management is everything.
That way, old or new does not matter. As a business, whether online or offline, your focus should be on building a great rapport with all your customers. Make your customers feel special.
Here a few tips on how to convert new customers into loyalists and retain returning customers:
With cutting-edge predictive analytics in tow, Graphite Note gets you all the data on new and returning customers. Compare absolute figures and percentages, learn how many customers you are currently retaining on a daily, weekly, or monthly basis.
Let the best predictive analytics guide you with your marketing and customer relationship management. Decide which customers need your immediate attention. Plan your marketing and promotional activities to fit the need of the hour.
Your customers are smart and intuitive. You should be too.