A 5% increase in retention yields profit increases of 25 to 100 percent. Repeat customers spend, on average, 67 percent more than new customers.
Source: Bain and Company
Experts agree and evidence abounds that profitability is all about creating loyal customers and driving repeat business. And since it is roughly six to twelve times less expensive to sell to an existing customer than it is to acquire a new one, the value of customer loyalty and repeat business is just too compelling to ignore.
It’s All About Communication
How do you get repeat business and earn customer loyalty? Take a lesson from small businesses that long ago grasped the dynamics and importance of building customer relationships through communication. They nurture their customers over time by learning and remembering individual preferences and interests. They acquire this customer information directly from customers through personal interaction. And they keep in touch with customers on a regular basis ensuring their business remains “top of mind.”
Email Turns Prospects and Visitors into Loyal Customers
Email marketing enables you to proactively communicate with your existing customers, prospects or members instead of passively waiting for them to return to your Web site, visit your store or office, or call you on the phone. With email marketing you can solidify existing relationships, initiate new ones and convert your one-time visitors, buyers and members into repeat business and long-term customers or contributors. No matter how your visitors, prospects and customers found you, email marketing adds to your bottom line because it allows you to maximize your investment in those expensive and time consuming marketing efforts and improve the return on investment (ROI) of every dollar you spend to obtain new business and develop profitable customer relationships.
Why is Email Marketing the Answer?
Email marketing is one of the most powerful marketing tools available today. It is easy, affordable, direct, actionable and highly effective. When you add email to your marketing mix, you spend less time, money and resources than with traditional marketing vehicles (e.g., direct mail or print advertising) And, with email marketing, you can communicate more quickly which means your time-sensitive information is disseminated in minutes, not days or weeks – and you can see the results of your efforts instantly. Email marketing is at its most effective when used in communications to your existing customer list or “house list” as a means of customer retention.
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