Why do you keep chasing new customers?
Customer acquisition is absolutely necessary, especially when starting a business. However, I see many established business make the same mistake. The mistake they make is that they ignore their existing customer base to chase down new clients. They are literally sitting on a pile of gold and they don’t know it.
A lot of time is spent trying to generate leads via Facebook and Google. These platforms consistently change their algorithms making generating leads extremely difficult and time consuming.
While 80% of marketing budgets are focused on acquiring new customers research is showing that the best path to growth and profits is by focusing on your existing clients. Customer acquisition costs are five times higher than customer retention costs and 20% of existing customers are usually the source of 80% of. A businesses profits.
Having a solid strategy to retain existing customers increases the lifetime value of that customer, it drives repeat business and builds a loyal customer base. All of this results in substantial increases in revenue and profits.