Sage Advice US

Why you should focus on your existing customer base

As entrepreneurs, we tend to spend much of our time thinking about customer acquisition. We spend money on marketing, advertising, and website design. We offer discounts, promotions, and special pricing to bring in that next new customer. But maybe we should shift our focus; according to The Chartered Institute of Marketing, customer acquisition costs are 4 to 10 times more expensive than the cost of retaining customers.

Consider that statement for a minute. How much have you spent on customer retention activities? For many companies, other than administrative costs of billing and collecting, their investment in keeping current customers is zero. What might it be worth to your company if you could increase the depth and breadth of the products or services you provide to your current customers? 2018 can be the year you refocus your efforts and achieve even greater success at a lower cost.

Start by reviewing what you know.

Then gather more information.

Design programs around the information you gather.

Stay in touch.

By turning your focus to your existing customers, you can reduce the amount of time and energy you spend tracking down that next new customer. Instead, you can develop the kind of deep and lasting relationships that keep your customers not only coming back for more but also spreading the word to their friends and family. And who doesn’t want to acquire more of the right customers?