Did you know that it costs 5 times more to attract a new customer than it does to keep an existing one? While getting new business enquiries is great and always exciting, agencies are often guilty of overlooking their current customers and the value they can add to your business. At Cuckoo, we’ve worked with some of the same brands for decades, and while we love the challenge of getting to know a new client, there’s nothing like helping one of our established clients take on a new campaign or innovation.
Here are just some of the reasons we’ve found value in customer retention:
A customer that you’ve worked with for a long time is more likely to trust you, which means that if you come to them with new innovations and ideas, they’re more likely to jump on board.
The success rate of selling to a customer you already have is between 60% – 70% whilst selling to a new customer is around 5%-20%. The reason for this is simple, they know you; they understand the quality of your work and that you have their best interests at heart. Clients that have worked with you over a long period of time can trust that you know their business, their brand and the best way to help them move forward. They know you’re not taking risks for the sake of making money, instead you’re helping their business to grow by providing the latest innovations and ideas.
Due to this trust existing customers are 6 times more likely to try new products and spend more money. They’re more likely to take you up on new products and recommendations which will help your business to grow. In any case, people are more likely to spend money with brands they know and love, so it’s no surprise that when it comes to investing more in marketing or trying something completely different, brands are more likely to stick with what (or who) they know. To put this into context, increasing your customer retention efforts by 5% can increase profits from anywhere between 25% – 95%.
Clients that know you well are so much more likely to recommend you even for the smallest of jobs, so looking after your existing customers will inevitably help your new business acquisition at the same time.
Despite the best efforts of marketing departments, nothing is better at influencing than word of mouth. It’s likely that all of your clients are well connected in their industry or some will even move on to new companies that need your help and so treating them well will only reflect well on you in the future.
Working with the same clients for a long period time helps you to establish not only great working relationships but friendships too and it makes the whole process of working together much more enjoyable. You can improve your communication and get honest, reliable feedback which will only improve your work.
The best thing about working with the same clients year after year is watching their business transform and grow, knowing that you played a part in it. From winning prestigious awards to gaining more property or growing their teams, there are so many ways businesses can grow and having long standing relationships means you feel involved in their success.
Every agency out there is constantly trying to sell, sell, sell, hoping to attract new business and grow their client base. By focusing on looking after your existing customers and offering them incentive to stay with you, you’re breaking the mould. Imagine you’re an existing customer and you constantly see the agency you’re working with trying to sell to new clients on social media or in emails, it won’t make you feel very valued. Plus, these people will have their inboxes flooded with different agencies trying to win over new business. So by reaching out personally, asking if they need any help and establishing that personal, emotional connection you’re already wining.
At Cuckoo, we value our customers old and new. We strive to help you make the most of your business with long-term strategies and building up lasting relationships that can span decades. If you’d like us to help your brand fly, call 0161 660 8352 or email firstname.lastname@example.org.