One of the main goals of any business (new or established) is to obtain customers, which requires visibility in some form or fashion. Although it may be intimidating, especially for introverts, this can be one of the more enjoyable tasks in business. But on the flip side, it can take over your time and money if you aren’t careful. As a result, this could potentially interfere with the resources needed to take care of current customers.
Finding balance and determining the allocation of resources (funds, time, and personnel) for attracting new customers and retaining existing customers is an ongoing effort that should not be neglected. Statistics show that it costs 5x more to attract a new customer than to keep an existing customer, which is pretty significant. If you can attract a lot of customers but then can’t deliver, you can quickly go in the red with your finances and reputation, which is just bad for business.
Since we are all about working smarter, not harder, and keeping as many coins as possible, the goal is creating a feedback loop where your retention efforts lead the way to new customers, lowering attraction costs. You have to be willing to play the long game because this will take trial and error and will not happen overnight. Start by scheduling time often to review your systems on how you can improve engagement with existing customers. Remember, you have won half the battle, they trusted you enough to give you money once, so double down and show them you have more to offer and can continue to provide exceptional products and services. In turn, they will become super fans and will help attract more people to your business.
Keep in mind that what attracts people to your business could be very different from what makes them stay. Be creative and dedicated to showing how you view your customers as more than just a number or a sale.
Here are a few ideas to help you with your customer lifecycle and feedback loop:
- Create videos and graphics of various ways to utilize your product. This could include tutorials because a low retention rate could be due to user error.
- Request their permission to send marketing materials to show off new products, services, and promotions.
- Create a referral program as an incentive to spread the word to others.
If you need help evaluating your systems and managing your customer lifecycle, we are here to help and are just one click away. Check out our business coaching services and schedule a call to get started!
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