We touched briefly in our last blog on the topic of customer retention and I thought I’d share some other interesting statistics today that point to the value of increasing your customer retention rates:
- 68% of customers will leave you if they perceive you to be indifferent to them
- A 5% increase in customer retention can increase business by 25-125%
- Repeat customers spend 33% more than new customers
And it’s long been known in marketing circles that it costs a lot more to acquire a new customer than it does to retain one. I’ve seen and heard statistics ranging from five to 30 times more. And, of course, we all know that whether a customer is satisfied with your product or service or not, they are going to tell other people. It’s worth the effort to keep them on board, and a newsletter can help you do that.
Why else would you consider investing in a newsletter? Think about this – a newsletter can:
- Increase lead generation opportunities
- Provide opportunities for cross selling
- Help solidify your relationships with your customers
- Remind customers how to get in touch with you – and why they might want to
- Support your other marketing efforts
- Provide measurable results, particularly if you send it out via an email provider and post it to your website
- Increase your online visibility in general
- Communicate your company’s unique strengths and attributes
- Tell the stories that demonstrate your company’s values and culture
- Differentiate your company from others in its niche
- Help your customers and prospective customers find you more easily online
- Help people form positive opinions about your company’s customer service, creativity and product performance
- Know and understand that you have a sound business capability, an outstanding hands-on skill set and strong leadership
- Feel inspired by the example you set for other companies in your niche
In other words, a newsletter allows your business the opportunity to give prospective customers reasons to trust you, and do business with you. As a business owner I understand the reluctance many business owners feel when it comes to spending money on something that doesn’t appear to have a direct line-of-sight to new revenue.
If you’re bidding on a contract, you can quantify all of the costs involved in getting your sales people in front of the decision-makers and you know how big the contract is and how much profit is likely to come out of it. That calculation is a little harder to make with a newsletter or, indeed, with any other content marketing initiatives. I address this in a little more detail in my chapter on measurement, but for the moment I invite you to look at the cost of setting up your newsletter as an investment. Your content marketing initiatives all work to form a matrix of “convincer strategies” that together draw your ideal customers to your sales people so they can have the conversations that might lead to a sale. More conversations = more sales.
Let me know if you’d like some help with that – there are a number of ways of going about it and I’d be pleased to bring my team’s resources to the task of supporting you with this kind of project!