On average research shows finding new customers costs five time more than getting current customers to do more business with you. Unfortunately, when advertising and marketing, most wireless dealers only target new prospects. Ignoring your current customers means disregarding people who, when given the opportunity would buy more. In fact repeat customers also tend to purchase more expensive products. For most carriers, lowering your churn by 1% will account for a 5% increase in profitability.
Happy customers also provide an invaluable asset to your business through word of mouth, helping you increase revenue without increasing your acquisition costs. Satisfied customers tell nine people, while dissatisfied customers tell twenty-two. Top performing retailers are twice as likely to focus efforts on improving the lifetime value of their customers and companies that prioritize the customer experience generate 60% higher profits than their competitors.
When it comes to customer loyalty the statistics are staggering, take a look around and you’ll quickly discover every major retailer offers a customer loyalty program. A quality program requires some key elements; exclusive discounts, customer feedback, relevant & useful information, and quality branding. Sending your existing customers rewards or incentives to shop with you again is an effective method for generating sales and increasing loyalty. This can be done through regular email communication, creating another touch-point with your customers. Asking for feedback is also a great way to show your customers that their opinions matter to your business, and that you’re listening to their concerns. It also allows you to see your business through their eyes, so you can examine where your company is meeting expectations, and where it has potential to grow in the future.
Communicating with your customers throughout their entire lifecycle is an invaluable tool to reduce deacts, increase referrals, generate addition revenue through accessory sales and maximize upgrade potential.