Customer Retention: Increase Revenue not Marketing Budget

So it seems like what every small business owner is in need help of is:

More Leads…

More Sales from Leads…

More Profits from Leads…

And not taking advantage of the customers you  already have in your business is costing you money and losing you revenue.

Think about if you were able to give your customers the highest value and even exceeding their expectations, you wouldn’t need “More Leads“.

Why because your customers would come back to you. Over and over as long as what you offer has a high enough return on investment (ROI). It means that they found your product or service offering was priced lower than what they perceived as the value.

Also, because if you serviced your customer by exceeding their expectations, they will want to tell everyone they know about the product and service you provide. Providing you with enough referrals that you won’t need to worry about lead generation. These leads from referrals, will be your new customers. Who are ready to buy, ready to get the same service and quality that other keep raving about.

If your still not convinced, bellow are some statics about the advantages of customer retention vs customer acquisition:

  •  It cost about 5 times as much to acquire one new customer than it does to retain that same customer.  

  • There is 60-80% chance that you will be able to sell to an existing customer while 5-20% for a new customer.

  • Your 50% of current customers are willing to spend money on new products and are willing to spend 38% more than new customers. Meaning that once your customer is satisfied with the business product or service offering, you can now upsell them to a higher priced product or service.

  • Another major statistic is if you were to increase your customer retention just 5% you could easily profit an addition 25-95%. (Harvard Business Review)

Wow! That is amazing increase in profits, that don’t cost any additional marketing. Just a little extra time to make your customer feel exceptional to the offering your company has.

Considering that only 18% of business are focus on Customer Retention, it means they are losing opportunity cost in increasing their revenue.

You can increase your sales and profits without having to spend a whole lot of extra in marketing by increasing new customers.

It all comes to not just satisfying the customer, but over offering your product or service. And in doing so you are going to profit on the additional revenue from:

  1. Decreasing the amount needed in your marketing budget

  2. Increase of sales due to repeat customer purchases and referrals

  3. Increase in the amount of sales due to upselling current customers

  4. Free promotions from satisfied customers who want everyone to know how happy they are with their product or service.

Now that I have your attention, you are probably wondering, ” how do you over deliver or exceed the customer expectation?”

Dynamic Empire Consulting has made it easy to increase the expectations and value the customers have your product and business.

To find out more and speak to Valorie one-on-one, just go to the link bellow and set a 30 minute free video call that we will go over the barriers that your business is having that is preventing it from maximizing profits.

https://calendly.com/dynamicempireconsulting

 

Valorie Hendrix

Owner of Dynamic Empire Consulting

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