When considering marketing strategies, many organizations focus on attracting new business. In my role as a real estate marketing consultant and investment strategist, I have seen competitors push aside current clients in order to accommodate potential new business. Because, for a business to grow, you need new clients. Right?
While new business development should be a part of your marketing strategy, data suggests marketing to current customers can offer substantial returns as well. Plus, according to That’s Customer Focus! by Ray Miller, attracting new customers costs on average five times more than retaining existing clients. So, maintaining and developing client relationships offers a better return on investment for your marketing dollars.
As you encourage trust through great client service and corporate transparency, customers will develop a sense of loyalty which, in turn, will lead them to spend more and refer others. You can easily market to existing clients without spending much. People will appreciate extra efforts and small gestures. For example:
- Send a small wedding present when you hear about upcoming nuptials.
- Create an open customer service forum on social media. A quick response (within an hour or two) to both negative and positive online feedback will help cement trust and develop credibility.
- Email periodic newsletters with information about new services and useful information relating to your field of expertise. Offering exclusive deals or promotions is an excellent way to engage your customers and make them feel special.
By nurturing existing relationships, you will develop new opportunities for revenue growth – such as upselling or cross selling – which may prove more fruitful than a handful of new customers.
