Retention Marketing: Growing A Business Selling to Existing Customers
New Customers vs Customer Retention
Businesses of all sizes have an interest in getting more orders to grow their business. Above all, new businesses that have no customers or very few customers. So these businesses focus on acquiring new customers. Most businesses use advertising and other marketing methods to make potential customers aware of their products or services. In turn, they may purchase the services/products offered. Usually, the cost of acquiring a new customer for a business is very high. This why established businesses prefer to focus on retention marketing. Retention marketing focuses on getting more orders from existing customers. Continue reading for the features and benefits of retention marketing
Usually, the cost of customer acquisition for a business, especially an online business is high. There are usually thousands of businesses selling similar products online. There are few reasons why the buyer should choose a specific online store. Moreover customers also hesitate before ordering from a new store. Given that they are not sure whether quality items will be as promised. Most businesses are using advertising for acquiring new customers. In the past, online advertising rates were low. Even if the customer did not purchase more items in the future, it did not make a major difference. This is because the business could easily acquire new customers. If the business had invested in branding, it was usually easier to acquire new customers.
However, online advertising rates have increased in the last few years due to increased competition. This means the cost of acquiring a new customer has increased greatly. Some businesses may have a low-profit margin. As a result, they cannot afford to spend more on acquiring new customers. Instead, these businesses are focusing on retention marketing. The goal is to get additional orders from their existing customers. As well as convincing the existing customers to place orders more frequently. Overall, getting new orders from existing customers is usually more cost-effective for the business. They do not have to spend money on advertising to sell to existing customers. These customers will also trust the business more since they have placed orders with the company before.
How Gorilla Gurus can Help
Furthermore, the existing customers for the business can also be useful for brand advocacy. As well as promoting the business and brand to their friends and relatives to get new customers. Gorilla Gurus works closely with all kinds of businesses. We have experience helping businesses with online marketing to increase their sales. We are branding experts. Search engine optimization ( abbreviated as SEO) is usually cost-effective for getting visitors to new websites. We monitor the effectiveness of various methods like advertising and SEO for lead generating. In turn, using this info to determine the best marketing strategy for the business to get additional orders.
Strategies for Retention
Initially, if the business does not have many customers, it will have to pay more to acquire the customers. After it has a well-established customer base, we will compare the cost of customer conversion using advertising, with the cost of getting additional orders from existing customers. We use this to formulate a suitable retention marketing strategy. In some cases, we may use email marketing to inform the customers about the new products or discounted deals. In other cases, loyalty programs or discount coupons may be useful to make the existing customers place repeat orders.
If your business is looking for a strategy for retaining your current customers, reach out to Gorilla Gurus today!
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