Marketing is how most businesses attract and engage customers – both new and existing customers. Marketing to attract new customers is significantly more expensive than marketing to retain existing customers.

65% of a company’s business comes from existing customers, and attracting a new customer costs five times more than it doest to keep an existing one satisfied. source

New customers need to be convinced of the value of your product or service, plus you have to find them and get their attention. The difficulty with simply getting the attention of new customers is that most consumers are conditioned to ignore traditional advertising – online it’s called “banner blindness.”

On the other hand, there is a group of people who already know your product or service, know your brand, have given you money, and are prepared to give you more! They’re called “customers.” While most businesses know the importance of keeping these “customers” happy, few businesses and brands actually succeed at providing good customer service. These businesses have failed to realize that good customer service leads to repeat customers and bad customer service leads your customers to your competitors.

Repeat business requires more than just savvy marketing tactics and messages. Repeat customers are a result of investing in and delivering both a good customer experience (leading up to the sale) and a good customer service experience (after the sale). Fail to deliver both, and your customers will disappear.

59% of Americans would switch brands or providers for the promise of a better customer service experience and on average, loyal customers are worth up to 10 times as much as their first purchase.

Treat your customers well, by providing good customer service, and they will do the marketing for you.

Customers that have a good experience with customer service tell as many as 6 people.

The point? Investing in a good customer service experience is far more valuable than investing in marketing.

Contact us now to learn how we help businesses keep and create loyal customers.

The facts and figures presented in this customer service blog post were found here.