Everything you should know about lifetime customers & their value

Attracting new customers is likely the most important goal for your company’s marketing plans. And while that is important, it isn’t the most important. Yes, you read that right, it isn’t the most important goal for your business. So, what should be your #1 goal?

Retaining those customers once you have them! But at what cost? Remember the rule of thumb when it comes to acquiring new customers? It is costing you 5 times more to acquire new clients than it does to keep current customers happy, and most of all, loyal.

Some numbers to support this:

  • It takes seven to ten contact attempts to get a new customer to buy.
  • As helpful as social media advertising and posts can be, the percentage who will buy after seeing those ads and posts are minimal.

Attracting new customers takes a lot of hard work, money, and time. It is easier, less expensive, and less time-consuming to keep current customers. You’ve heard the old saying, “Worker smarter not harder.”? This applies to maintaining current customer loyalty.

Drive Your Sales Up With Loyalty

There are some psychological eccentricities when customers buy from you that will keep them loyal to you in the future.

1. When we spend money on something, there must be something good about it, right? And if we come back to buy it again, that shows we made a choice the first time that worked out well for us.

2. As a rule of thumb, we are more likely to purchase something again when we are comfortable and familiar with them. Most of us prefer to buy what we’re comfortable with instead of trying something new because it is easier and more familiar.

3. There is a feeling of camaraderie between customers. If others are confident about a product or service, we’re more likely to follow suit so we’re “one of the crowd”.

The takeaway you should get from this is making that first-time or one-time customers repeat customers should be a marketing goal. But how much are lifetime customers worth to your business?

There isn’t any set value to this, and while one customer may come back 10 times, you want the customer that comes back for a lifetime. Where there is 27% chance a one-time customer will come back for a 2nd purchase, there is 54% of three-time customers will like to come back for that 4th purchase.

How Much Are You Going To Make?

A 2-repeat customer will make you 150% of what you invested in keeping them. A 3-repeat customer will make you 225% ROI, and for a 4-time customer, you can get a 300% ROI! Every purchase they come back for will give you a higher ROI.

Give the team at Quantus Creative a call today and let them give you guidance on how to get more customer loyalty for your business!

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