We have all heard that it is approx 8x more expensive to get a new customer as it is to keep an existing one. But did you realise the impact on transaction values was also affected?
So when you are considering the impact of customer churn and retention don’t just look at the individual conversion rates and consider those to be the measure of success.
When you have an existing customer who loves what you do they become more than just another one of your customers, they have turned into a fan! As an advocate they can do many things to boost your profits, one of which is to buy more stuff!
The share of wallet that you command from a customer is often overlooked as companies find it difficult to assess how much of their product portfolio customers actually allocate spend to.
However, what we do know is that customer advocates spend on average about 67% more with a company than a new customer does!
You know it to be true yourself. When you choose a new brand, you might dip your toe in with them and buy something. Something small to start you off with. If you have a good experience then that turns into repeat business, if it is a bad experience it becomes a short relationship!
But when you are a fan of a brand, you buy loads more of their stuff! Think about advocates of Apple products (I am one such geek!), they fall over themselves to have the latest gadgets and products on sale!
The good news? You don’t need to be an Apple to create fans! Just start by giving customers a great experience and treating them well……..and stop cocking up to give them a reason to hate you!
So with some really easy to follow changes to your approach you could end up with customers who remain loyal to your company and also buy more. Now thats gotta be a win/win/win situation?
Until tomorrow, keep on loving your audiences!