Sage-Tips

Is it harder to find new customers than it is to retain old ones?

Depending on which study you believe, and what industry you’re in, acquiring a new customer is anywhere from five to 25 times more expensive than retaining an existing one. It makes sense: you don’t have to spend time and resources going out and finding a new client — you just have to keep the one you have happy.

What is customer experience gap?

The customer experience gap is essentially the gap between what customers want and what organisations actually give them. In other words, it is the result of your brand failing to meet expectations at any point across the customer journey. Ideally, we all want to have a small gap or no gap at all.

How has marketing evolved over the past decade?

As society shifts, marketing shifts with it. Arguably, the last 10 years have seen the greatest technological growth ever. As people’s attention shifted from offline to online media, marketing followed suit. With the rise of online media, the type of messaging marketers use had to evolve.

Is it cheaper to keep old customers or get new customers?

Acquiring a new customer can cost five times more than retaining an existing customer. Increasing customer retention by 5\% can increase profits from 25-95\%. The success rate of selling to a customer you already have is 60-70\%, while the success rate of selling to a new customer is 5-20\%.

Why repeat customers are better than new customers?

Repeat customers were also found to spend 67\% more than new customers. The more times you are able to get a customer to make another purchase, the greater their potential lifetime value becomes. In addition, the more often repeat customers convert, the higher their average order value compared to first-time customers.

What are customer value drivers?

Your customer value drivers are selling points—from product performance to ease of delivery—that make your product or service valuable to customers. These value drivers reveal what people are willing to pay for your product or service and, also, which product developments will have the highest return on investment.

What latest capability has raised the bar on what’s considered innovative?

A new crop of capabilities, such as AI, continues to raise the bar on what’s seen as innovative. And for a majority of customers, innovation impacts purchasing habits.

How marketing has evolved over the past 100 years?

The only thing that has changed about marketing in the past 100 years is technology. That’s it. Yes, we now have social media and tweets and followers and apps and branding and re-marketing and analytics and focus groups and ROI and segmentation and customer experiences and digital and… you get the picture.

Has the marketing concept changed over the years?

There has been a further refinement in the marketing concept particularly during 1970s and 1980s. Accordingly, the new concept goes beyond understanding the consumer needs and matching the products accordingly. This philosophy cares for not only consumer satisfaction but for consumer welfare or social welfare.

What percentage of customers are repeat customers?

Your Repeat Customer Rate will ultimately depend on your business’s industry and customer satisfaction levels. Although benchmarks vary from company to company, most ecommerce businesses have 25-30\% percent returning customers.

Is it easier to keep an existing customer?

The good news is that the costs associated with repeat business are, generally, significantly lower. 70\% of companies say it’s cheaper to retain a customer than acquire one, while others have suggested that the cost of acquiring a new customer can be as much as seven times more expensive.

What does the future of customer service look like?

For consumers the future of customer service cannot come soon enough. The customer experience landscape is ripe for disruption. Companies are slowly making progress toward more seamless and simpler customer experiences.

Is your technology savvy enough for customer service today?

Today the technology for most customer service operations is still not savvy enough for customers to avoid the burden of the old phone call. Customers prefer self-service, but will call when it’s a more complicated matter says Kate Leggett, Analyst at Forrester.

How has the marketing world changed in the last 10 years?

The marketing world has changed dramatically over the last ten years. I have had to personally go through a digital transformation to truly understand how to best market my business and because of this, I have analysed every step of a customer acquisition journey.

Is it time to sift through customer service content?

But this isn’t ideal, sifting through customer service content can be messy and time consuming. In the future companies will take advantage of data through the internet of things, where content is sent to the customer as soon as the product realizes something is wrong for the customer.