ATLANTA, GA / ACCESSWIRE / August 20, 2020 / It is hard to run a business without customers. However, while every customer represents a valuable opportunity for a brand, not all customers have the same potential to become loyal and repeat customers.
"Companies should treat every customer with respect, attentiveness and a commitment to providing a positive experience. But when it comes to promotional efforts, it's critical to focus efforts on the customers who are likely to provide the greatest return on your marketing investment," says Deepak Agarwal, entrepreneur and C-suite retail executive.
To better understand the value of a customer, it is essential to calculate how much it costs you to convert a prospect into a customer and how you can expect that customer relationship to develop over time. In the simplest terms, if you spend more to acquire a customer than they provide in revenue, you are making a critical error and a bad investment.
"To ensure that your customer acquisition strategy is guided by ROI data, keep your marketing efforts focused and targeted," says Deepak Agarwal. "This requires using data to understand what your customers care about, where they can be reached, and what messages resonate with them. By creating a clear picture of your ideal customer with well-sourced data and insights, you will make better use of your time and resources."
Beyond simple acquisition, there is also a massive opportunity to improve ROI by reducing customer churn. Alternatively known as customer attrition, customer churn refers to the point at which you lose a customer, or they opt out of your products and services.
"There is immense benefit in spending on customer retention. Once you have attracted the business of a customer, it is far more efficient to retain that customer, rather than earn a new one," noted Deepak Agarwal. "When the consumer is familiar with your brand and its value, your budget will not have to work as hard for the sale."
While retention strategies will vary by business and industry, the primary focus should always be on keeping current customers happy, providing value, and reinforcing the idea that their business is important to you.
"Find ways to give customers the types of treatment that encourage them to come back from more," said Deepak Agarwal. "This approach not only supports retention, it also can turn clients into brand advocates that will spread positive word-of-mouth that may result in new customers."
For more expert business tips from Deepak Agarwal, read Top 5 Tips to Master Social Media in Online Retail.
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SOURCE: Deepak Agarwal
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