Marketing experts believe that one of the most important things in selling products is to take care of your existing customers. The same idea applies to e-commerce businesses. That’s why, for today’s article, we will share with you the importance of customer loyalty for your business.
Here are four things that solidify the importance of customer loyalty in online businesses:
New customers vs. existing customers
There are several benefits that businesses can get from returning customers. The best digital marketing companies in Los Angeles believe that the cost of attracting new customers is five times more than keeping existing customers.
Creating loyal customers will create referral opportunities, as well as brings in additional business, which lowers the cost of marketing campaigns.
Loyal customers can increase profits.
Compared to current customers, new customers are likely to be price conscious when buying products online. However, returning customers are likely to spend 10 times more, especially if they are loyal to your brand.
It’s easier to sell to existing customers.
According to experts, 80% of your future revenue is likely to come from 20% of your current customers. It is way easier to sell to existing customers than to new ones. The probability of selling products to an existing customer is around 70 to 80%. On the other hand, the possibility of selling products to new prospects is down to 5%.
Loyal customers are likely to give you feedback.
Existing customers are more willing to give you feedback than the new ones. And feedback is especially valuable if you want to attract new customers to your online store. Feedbacks also add value to your business and increase the user’s trust.