From Struggle to Success: How Focusing on Existing Customers Saved My Business

Have you noticed that what the marketing guru’s are ‘promoting’ this year is different to last year?

One reason is that what was working last year, is already changing - and businesses that don’t adapt and adjust their marketing will continue to struggle.

On the other hand - focusing on your most effective target group in today's sales environment is more local than you might realise. ??

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Whilst new customer acquisition is important, research shows that existing customers may provide the most significant returns.

Existing customers are more likely to buy from you than new prospects. Studies have found that businesses have a 60% - 70% chance of selling to an existing customer, compared to a mere 5% - 20% chance of selling to a new prospect. This highlights the importance of nurturing and maintaining relationships with your current clientele.

Moreover, retaining existing customers is not only easier but also more profitable than constantly pursuing new ones.

Reflecting on my own business journey over the past four years, I've realised the substantial impact of prioritising existing customers. Despite investing significant time and resources into marketing gurus and consultants, the majority of my income—80 per cent, in fact—has stemmed from existing customers. By dedicating just 20 per cent of my time to nurturing these relationships, I've established a steady stream of revenue and ensured the stability of my business.

So, focusing on existing customers is a strategic and effective approach to maximising sales.

The statistics speak for themselves: selling to a customer you already have is 60-70%, while the success rate of selling to a new customer is 5-20%. Customer experience agencies have found that loyal customers are 5x as likely to repurchase, 5x as likely to forgive, 4x as likely to refer, and 7x as likely to try a new offering.

Furthermore, loyal customers tend to spend more over a longer period of time, which helps your long-term profitability too. And churn costs you because acquiring new customers is more expensive than retaining existing ones

In conclusion, prioritising existing customers is not just a strategic move—it's a financially savvy one. By focusing on nurturing and maintaining relationships with your current clientele, you can drive sales, foster loyalty, and ensure the long-term success and profitability of your business.

What are your thoughts on prioritising existing customers in your business strategy?

Share your insights in the comments below.

Thank you for reading and following.

James Wendell Browne ??

#KingMaker #BusinessClarity #Leadership #ClarityIsPower #SuccessJourney

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