Small business owners think on their feet. Constantly hustling from task to task making sure their operations continue, customers are happy, and employees are satisfied is more than a full-time job. Now add bookkeeping, marketing, and having a personal life. So much to do and the only thing that doesn’t change is that without customers, a business will fail. Over the years, Towny’s text marketing services and programs have helped thousands of local business owners. Using that knowledge, we’ve compiled these 5 key reasons why you make more money from loyal customers than new customers.
Loyal Customers Talk
The best gift a business owner can get is a referral. A trusted recommendation for a restaurant or a service company is more reliable in most cases than an advertisement or promotional deal. Word-of-mouth is real, it’s extremely valuable, and it works. Loyal customers attract new customers and this revolution of new and existing customers is what transforms single location businesses into franchises and national brands.
Loyal Customers Spend More Money and Return
Loyal customers spend more money than new customers and are more likely to return. In an article by Forbes, they stated: “Research found that existing customers are 50% more likely to try new products and spend 31% more, on average, compared to new customers.” We are creatures of habit. Treat your customers well and they’ll return it tenfold.
Loyal Customers Continue to Return, Even When Things Are Scarce
When supplies and supply chains are scarce, surviving businesses are a testament of the hustle put forth by the business owner and the loyal customers who truly care to support the business.
Loyal Customers Become Friends & Influencers
Many people rely on the internet for a recommendation or opinion about a product or service. A report by ROBO Economy showed that 82% of smartphone users turn to their phones on purchases they are about to make. And many of those people take to social media searching for recommendations or opinions on products or services. Loyal customers are the ones who often answer those posts and share their valued advice for others to see.
Loyal Customers Tell You What You Need To Hear
Loyal customers are willing to share their feedback with businesses – the good reviews and the bad too. The extra few minutes a customer takes to share their opinions is a sign they care and want to see the business succeed. Businesses that lead in customer experience outperform laggards by nearly 80%. Listen to what loyal customers say… their opinion and ability to return for more products or services is the lifeblood of a business.
Small business owners are constantly hustling from task to task making sure their operations continue, customers are happy, and employees are satisfied. A business can increase its annual sales upwards of 30% by focusing attention on returning existing customers over acquiring new customers. These 5 key reasons why you make more money from loyal customers than new customers are a simple reminder of what your business can focus on to generate more traffic and sales.
Want to take your business to the next level of customer loyalty and retention? Check out Towny’s full-service text marketing and rewards services. Learn more.