Oftentimes brands too heavily focus on attracting new customers. Due to the high acquisition costs of a new customer that does not return, marketing to existing customers is just as if not more important. In order to maintain sustainable growth, you must not only increase the total number of customers but also purchase frequency and the average order value.
The value existing customers bring to your business
Existing customers provide the most revenue especially during off-seasons and slower shopping periods thus providing steadier purchases. Repeat customers not only buy more items than new customers, but also buy higher-priced items. Studies show that on average the revenue of one repeat buyer is the total of five new customers, thus existing customers have a direct impact on increasing revenue.
Do your research
First things first, do your research! Gathering data on your customers is going to help you make informed decisions on how you promote your products and help you to create targeted ads. Look into the purchasing decisions of your customers and determine what they buy, how much they buy of it and, whether or not they are motivated by discounts.
INTRODUCING A LOYALTY PROGRAM
What better way to create customer loyalty than with a loyalty program. These programs can be paid or free and work to offer exclusive benefits like rewards or discounts to members. Loyalty programs work to provide customers a reason to return to your store and create a relationship with them.
Create customer profiles for a personalized/targeted experience
Customer profiles help to tailor ads and suggestions to the specific customer which enhances marketing effectiveness and creates a better user experience. Successful personalization will drive customer engagement and help generate relevant data.
Contest & giveaways
One way to engage current customers while targeting new ones is through contests and giveaways. This can be an engaging way to market to existing customers while attracting new customers of a similar target market through the followers of those who participate in said contests. Most contests and giveaways are held on social media platforms and encourage the engagement of consumers thus increasing reach and ultimately revenue.
Email is an extremely effective way to market to existing customers and often results in a repurchase. Email marketing works to follow up with existing customers post-purchase to encourage a repurchase. Oftentimes these emails include offers, but ultimately remind the customer of occurring deals and encourage them to return to the store.
Market items on a schedule
Scheduling product launches can increase the amount a customer orders and the frequency at which they do. Following a schedule will encourage the consumer to make this purchase a part of their routine and be more inclined to browse the website at a certain time. If your customers are aware of the time and date at which you normally drop a product it is likely they will visit your website at that time or at least open the announcement email.
Upsell and cross-sell
Cross-selling and up-selling are marketing techniques that work to increase the average order value. Cross-selling is when a business offers a product or service for purchase that is complementary to an item they have already or are looking to purchase. Cross-selling promotion is most useful when a consumer is looking at their cart, similar to the in-person experience of a consumer browsing the aisle as they check out. Up-selling is when you persuade a customer to purchase an item that is of higher quality/ price or to increase the amount they are purchasing. These methods can be seen during purchase or through other promotional strategies like email marketing.
Let our inbound marketing experts approach your next campaign with a strategic plan. Get in touch with us today to discover what strategy is going to elevate your business in 2021!