Most companies always have the same focus: prospecting new retaining your customers, most of their marketing and advertising actions are aimed precisely at finding new users and turning them into consumers of their business, however, is this strategy really worth it?
Of course, attracting new people is always welcome, and the larger your customer base, the more your brand can grow within your market, but the big question remains: what about loyalty? Isn’t it worth as much?
After all, if you weigh up all the pros and cons of retaining your customers loyalty and prospecting for new customers, what is more cost-effective? What is better for a company? Chasing new customers or retaining those who are already accustomed to your business and already know what your automatic gate repair service is like ?
Believe me, this is a very common doubt within most businesses and we will help solve it. In today’s text, we will analyze what is actually more worthwhile, retaining customers or prospecting new ones. Let’s find out! So, let’s go!
Customer loyalty, what are the advantages?
Let’s start by talking about customer loyalty, which, as the name suggests, refers to the act of creating a more solid relationship with a specific first-hand advice user base, making them buy your products with a certain frequency and be loyal to your brand. Below, we have separated 3 of the main advantages of loyalty, check them out!
Cost reduction
Building customer loyalty means keeping how to reduce it operational costs? them within your purchasing base for a certain amount of time, which means that the user can consume your products and services with a certain frequency. This, of course, means that you have a great cost reduction, since you don’t need to spend on advertising and publicity to attract new customers.
Winning over someone who has already consumed your products is much cheaper than attracting someone completely new, which makes loyalty an excellent cost-benefit, with an extremely low cost and extremely positive results.
Increased revenue
According to research by Econsultancy, a customer executive list who has already purchased a product from a company has a 50% chance of trying new products from the same brand, and up to 31% of spending more than new consumers, even if they are opposite products such as a PVC film packaging machine and a set of school notebooks.
This happens because the customer already has a certain amount of trust in your brand, already knows about its quality and therefore is more likely to consume more products on a constant basis, which in fact increases your revenue with more and more sales.
Brand indication
Another interesting point about customer loyalty is that a large part of them helps in prospecting new consumers automatically through the famous word-of-mouth marketing. According to research by Nielsen, around 82% of consumers look for recommendations before closing a deal, and 71% of Brazilians recommend a product to a friend if they are satisfied with it.
Therefore, a loyal customer is much more likely to recommend the brand to someone else, also acting directly in prospecting. The more loyal they are to your brand, the more they become an ambassador for it, making frequent and efficient recommendations to other people.
And prospecting, what are the benefits?
Customer prospecting is based on attracting new consumers to become customers of your brand. This is an action that involves starting from scratch, as if you were installing cameras in a place with no security. Below, we have separated the main advantages of this action.
New customers all the time
The first major benefit is the volume of customers within your company. With prospecting, it is possible to acquire new consumers all the time, which helps to move your customer base and ensures that you are always up to date within the market.
We all know how dynamic the market is, and taking advantage of this influx of new customers helps your company adapt to the emergence of new trends and adapt to market needs, while staying with just your current clientele means you don’t have a sense of what’s happening in the outside world.
Sale of various products
An old and loyal consumer tends to always buy the same product, or vary their choices too much, which can end up resulting in some items being left aside in your stock.
Prospecting allows for greater variation in your sales, following different tastes, people and trends, and allowing you to sell diverse products, such as a rotary joint , for example, for a much more random portfolio.
Increased audience and brand recognition
Finally, prospecting also means increasing your audience and brand recognition. The more new people start to consume your products, the more recognized it becomes in the market, with more and more users recognizing it.
This represents a great gain in authority and generation of recognition, serving as a true voltage regulator, expanding your business and making it grow bigger and bigger.