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Showing posts with the label customer lifetime value

New Customers vs Returning Customers

Many businesses do not know about their customer base, they will just keep on relying on new marketing tools to attract new customers. This may sound odd, but my belief and emphasis have always been on understanding my customer base so that I will be able to grow and retain them. The idea behind this is that, getting new customers is difficult, so it’s important to retain the ones I have, establishing a relationship with them while I continually look for new potential customers. Let me share with you why you should get started to work on your customer base too! Profitability of existing customers The process usually begins with knowing who your customers are, which eventually helps to improve their customer satisfaction, and in turn your products are being sold more to your existing customers. Statistics have even shown that the probability of selling to an existing customer is 60%, which is much higher than to a new customer reported at 5%! Note that this profitability is not ...