Nothing makes less sense than the average marketing budget. It costs at least 6 times more to land a new sale than to sell to an existing customer who already knows and trusts you, which means your profit margin is way higher with customers already in the funnel. Most businesses should know this, and yet the average business spends only 12% of their marketing budget to romance repeat customers.
With all the data available today, there’s just no excuse for that. Is it possible they don’t know how to use their data? Or is using customer data just that inexpensive?
Advantages of Reaching Your Own Customer Base
Your customers already know you. They know you’ll deliver what you promised, and they like you enough to still be customers. You have an established trust relationship.
Your customers are your best cheerleaders. Word-of-mouth and online reviews are what’s driving purchase decisions, and it’s something your customers volunteer for. You don’t even have to ask. If they’re happy, they’ll tell their friends. It’s really that simple.
An old customer will spend more than a new one…and will keep spending. What’s more, if they are happy with your marketing and customer service, customers won’t leave even if your competitors pitch lower prices.
The Not-So-Secret Secret: Segmented Lists
When you delve into Insightly customer data, it’s easy to break out lists with specific characteristics. For example, you might want to find all customers who recently purchased a specific product and invite them to check out a related product.
Of course, not all businesses sell products. Service providers that specialize in a single or suite of products can segment by date and level of service to touch base on a schedule and ask if the customer is satisfied, send polls about how they can improve, or share news about coming features.
Making the Magic Happen
Enticing your existing customers is all about data-driven marketing. When you understand your data, you can tell them what they want to hear, offer quality information, and tap into what they really want.
Everything you need to know is in your Insightly CRM and its integrated apps. Gather information from invoicing, social media, email opens, click-through rates, and conversions. Your data can tell you which headlines and subject lines work best, and inspire you to narrow your target to send the most powerful emails to only a select list—full of people who are waiting to hear it.
The Adobe Digital Index Report shows how skewed marketing funnels really are. Key findings indicate that repeat customers in the U.S. represent only 8% of site traffic, but account for 40% of the revenue.
Which means businesses need to attract 5 to 7 new leads to equal the revenue of every existing customer. So why would any business spend so much of their marketing budget trying to attract new business while taking existing customers for granted?
Fix your funnel by diverting more of your marketing budget into your existing customer base. You won’t regret focusing on your biggest fans—the customers who already know and trust you.
Use your CRM to manage your funnel and keep existing customers coming back. Check out Insightly’s features and plans on our pricing page or jump in and sign up for a free trial.
