A few millennia ago when Confucius declared that one should “hold faithfulness and sincerity as first principles,” it’s certain that he wasn’t referring to business strategy (because there was no accompanying TED Talks and certification program). But his sage advice does apply to today’s business landscape; specifically when it comes to the topic of customer loyalty.
Indeed, when it comes to generating profit and keeping the competition on the outside looking in, there’s arguably no higher priority than keeping happy customers on board. Behold the eye-opening statistics:
- Loyal customers are worth as much as 1000% more than their first purchase.
- Keeping just 5% of customers from churning can drive profitability 25-125%.
- It costs 500% more to acquire new customers than to retain existing one.
- It costs 16 times more to increase the value of a new customer to match the level of an existing one.
Of course, knowing that customer loyalty is profitable and essential for long-term growth is one thing. Making it happen in a cost-effective and efficient way is another. And that’s where inbound marketing enters the picture.
Contrary to what some businesses believe, inbound marketing is by no means exclusively about targeting and acquiring customers. Naturally, this is a big piece of the puzzle, and inbound marketing is perfect for pulling new customers in through content like blog posts, ebooks, white papers, and so on. But inbound marketing is also ideal for staying connected with existing customers and driving customer loyalty. Here are the 5 key reasons why:
- Inbound marketing helps businesses stay on their existing customers’ radar – NOT by drilling them with sales message after sales message (which they hate), but by providing them with interesting, relevant, timely and topical information.
- A great deal of customer churn results from customers not taking full advantage of their purchase (e.g. struggling with aspects like configurations or compatibility). Inbound marketing sends targeted, on-message content that helps existing customers get the most value and results out of their purchase, whether it’s a smartphone, software solution, insurance product, or anything else. That means less churn, and more happiness, loyalty and profits.
- One of the most lucrative sources of new business is word-of-mouth referrals from existing customers. Inbound marketing supplies these mobilizers with digital assets that they can easily share with their professional and personal networks. For example, instead of telling a colleague, family member or friend “call me and I’ll tell you about this product that I bought” (which is time consuming and may not be a priority), existing customers can simply say “I’ll email you an ebook that will help you understand why this is worth checking out.”
- Businesses can use inbound marketing to track and analyze how existing customers access and share content. This is especially beneficial when it comes to closed loop analytics, and linking specific pieces of content with results. For example, businesses can use inbound marketing analytics to see if an ebook sent to existing customers helps lower the number of support requests for that topic.
- Last but certainly not lease: inbound marketing is very cost effective and uses automated processes that work 24/7/365. Once content is created and lists are built, it’s just a matter of setting up the workflow and pressing go.
To learn more about how inbound marketing can help you foster loyalty – and drive profitability – with your existing customers, contact the Leap Clixx team today and talk to our CEO about how Leap Clixx could be of help. Your consultation is free!
Topics: Inbound Marketing