Why do companies need to maintain old customers?
Maintaining good relationships with customers is critical if a business is to remain successful. According to the data, maintaining existing customers is only one-tenth the cost of acquiring new customers, and existing customers create 67% more value than new customers. Only by maintaining customer loyalty can companies improve customer retention rates. But even if maintaining old customers can bring significant returns, it is not valued by enterprises, so why should enterprises maintain old customers?
1. Help attract new customers
Word of mouth from old customers is the best marketing, and they are the most effective force to attract new customers. People are more likely to trust recommendations from people who have used them than advertisements and merchants. The more purchases they make and the better the experience they have, the more likely they are to tell others about your product or service, and you can help promote the new by setting up campaigns.
2. Understand the market
Businesses want information about their target audience, and existing customers are the best source of information. To better understand how and why potential customers become customers, you can use data analysis to understand which types of consumers are most likely to use your product or service. They can help you discover ways to create more loyal brand fans. It is also much easier to cross-sell with existing customers than to new customers.
3. Get more support
Loyal customers of your business will be more willing to support your product and even pay a premium for your product or service. Old customers with high trust will bring higher returns to the business, while new customers are usually more price-conscious.
4. Reduce marketing costs
We said earlier that retaining current customers is much less expensive. When a business has a large number of loyal customers, you can spend less money on product promotion and brand awareness. When your customers are basically familiar with your products and services, the cost of customer support can be greatly reduced.
Taking customers as the core is the core idea of enterprise development. The importance of customers to enterprises is self-evident.
