Is it more important for a brand to stabilize old customers or a
Compared with potential new customers, old customers are more important . Both are important for the overall future development of the enterprise, which is nonsense and has no value for discussion.
Blindly by attracting new customers to achieve their own development, is one of the most common mistakes many companies make.
Comparison between the two, old customers are more important than potential new customers. The so-called \\\"important\\\" can be specific to apply more company resources to existing old customers to maximize the value of existing customers.
1. High retention rates
Research shows that for every 5 percent increase in user retention, profits increase by 25 to 95 percent. In turn, this means that user churn will bring huge losses.
2. The cost of acquiring new customers is too high
Attracting new customers often requires huge investments in marketing. The problem is that new customers are often hard to attract.
As online and offline advertising costs continue to soar, the more you invest in attracting new customers, the greater the loss for every lost customer. In this way, it is crucial to retain existing customers, whether from the perspective of recovering advertising costs or from the perspective of preventing customers from falling to competitors.
3. Retaining existing customers can create higher current profitability
The longer you keep your customers, the better your chances of getting more out of them. Because you can sell more goods or services to make a profit, and you can also make money through continued customer renewals.
After the average revenue of the old customers increases, the company can invest the funds obtained from the old customers to the growth of new customers, thus creating a virtuous circle.
4. Retaining existing customers improves retention
Because the longer users use a product, talk about it, and recommend it to friends and others, the more likely it is.
It\\\'s also important to note that the language used by regular customers to recommend products to friends will help you understand the value and features of your product that they value. And let you know the language you should use when promoting your product.
5. Discover the core value and optimization direction of the product
Older customers are more knowledgeable about the product or service, which often leads to more specific and informative feedback.
Collecting and analyzing the product usage behavior of old customers, looking for their frequently used functions and their characteristics that are different from other customers in the product interaction process can help you discover the core value of your product.
Behavioral data from regular customers can help you answer definitively – what is the core value of the product? Who are the core customers? Why? With these answers, there is a realistic basis and direction for continuing to optimize the product.
All in all, if a business wants to grow, it should not only focus on how many potential consumers it can acquire, but more importantly, how to maximize the value of existing consumers. Accumulating customer base is like storing water in a pond. If the loopholes are not filled, increasing investment will only increase waste.
