Existing customers spend more
Posted: Mon Dec 23, 2024 4:40 am
Therefore, it is 50% easier to sell to existing customers than to new ones. Consequently, existing customers are 9 times more likely to convert than a new shopper.
In fact an average of 33% more than new customers. Furthermore, they are less price sensitive, because they are aware of the value of your products or services.
Therefore, with each repeat purchase, the average order value and thus profitability is higher. This results in increasing conversion rates over time.
3. Existing customers are useful
If your existing customers are satisfied and loyal, they often become advocates and increase your customer acquisition without any marketing efforts on your part. Customers’ advocacy is extremely cell phone lists for sale important as it presents social proof for your company. It is often more effective than any of your own marketing campaigns, as shoppers are viewed as unbiased.
Furthermore, you can also use existing customers to improve your company, as loyal customers are often more open to providing feedback.
4. It costs less to retain than to acquire customers
According to Harvard Business Review, it is 5-25 times more expensive to acquire a new customer than to retain an existing one. According to Martech, it is 16 times more expensive to bring a new customer to the same level of profitability of an old one. Furthermore, an increase in customer retention of 2% can lower costs by as much as 10%.
Why is it less expensive to retain than to acquire?
In fact an average of 33% more than new customers. Furthermore, they are less price sensitive, because they are aware of the value of your products or services.
Therefore, with each repeat purchase, the average order value and thus profitability is higher. This results in increasing conversion rates over time.
3. Existing customers are useful
If your existing customers are satisfied and loyal, they often become advocates and increase your customer acquisition without any marketing efforts on your part. Customers’ advocacy is extremely cell phone lists for sale important as it presents social proof for your company. It is often more effective than any of your own marketing campaigns, as shoppers are viewed as unbiased.
Furthermore, you can also use existing customers to improve your company, as loyal customers are often more open to providing feedback.
4. It costs less to retain than to acquire customers
According to Harvard Business Review, it is 5-25 times more expensive to acquire a new customer than to retain an existing one. According to Martech, it is 16 times more expensive to bring a new customer to the same level of profitability of an old one. Furthermore, an increase in customer retention of 2% can lower costs by as much as 10%.
Why is it less expensive to retain than to acquire?