Eva Martinez, CPA
There’s A Lot of Money Hiding in Your Business...
Updated: Jul 22, 2022
Smart businesses carefully and consistently collect contact information from a mix of customers and prospects. Maybe a portion of that audience has stayed engaged through sales, discounts, and special offers, but chances are the vast majority of those in your contact database aren’t spending money with you. Many might not even open your emails anymore (I’m assuming you stay in touch with them at least via email…are you?).
Research shows that a customer/client/patient database with thousands of names can have as much as 70% inactive or prospective buyers. That untapped potential can be turned into more sales, profit and cash-flow really fast.
These subscribers have shown interest in your brand, and perhaps they’ve spent some time and money with you. But if they don’t “hear” from you again, they disappear.
And while it may be tempting to always be on the lookout for new business, if you want to generate more revenue faster and for less, you need to make sure to take care of your current database.
It's much easier to make money with less expense with existing buyers than to secure new ones!
Research shows that it costs 6-7X more to convert a new visitor into a customer than it does to retain an existing one. So, if you're interested in improving your profitability and lowering your marketing costs, improving your customer retention is the way to go.
Regardless of your specific business, there's no denying the benefits of keeping existing clients/customers/patients engaged with your business. Repeat buyers are more likely to come back, engage with you on other marketing channels, and refer you to their friends and much more.
Here's where it gets interesting…
In our experience, repeat customers tend to spend around 67% more than first-time buyers. This statistic means if you can keep existing customers coming back, you're likely to see an increase in your average sales amount and in profits.
While new customer acquisition is also vital for any successful business, reactivating dormant prospects and/or buyers can be an important income source and a key way to minimize the “leaky bucket” aspect of any sales process.
Regardless of your industry, almost all businesses can generate repeat business....
Implementing a customer reactivation campaign that utilizes multi-channel marketing will help you reach more customers and will get them to respond.
You can use emails, SMS messages (with open rates as high as 98% as they “see” it –on their cell phones), and voice messages. That means every customer that you reach out to is likely to take you up on your new offer, make an appointment, a special offer, a discount coupon, etc.
You’ve paid a pretty penny to get those buyers in the first place…
Might as well get them to come back so they can buy again and again.
High Engagement - Low Cost
No matter what the reason was that those customers stopped buying from your business, reactivating customers that have become inactive is an important part of any company’s marketing processes. It can make a huge difference in revenue because it increases your customers’ lifetime value (LTV), costs less than getting a new customer and results in much higher profits.
IMAGINE what multiple campaigns during the year can do for your business…
It will only take you a few minutes to find out by clicking here