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· They felt prices were too high or unfair.
· They had an unresolved complaint.
· They took a competitors offer.
· They left because they felt the business didn't care.
The last two options make up the majority of why a client or customer will no longer use a service or a product. Laura believes this makes sense because customers often purchase a service or product because they have developed a relationship with the company, or they owned another product, or a friend or associate referred them to you.
When given with the aforementioned information she ponders the reasons why businesses spend 80% of their marketing dollars going after new customers and clients rather than nurturing, retaining, and maintaining the customer relationships they already have? She suggests before spending time and money going after new customers and clients that a business does not have a relationship to consider the following statistics:
· Repeat customers spend 33% more than new customers.
· Referrals among repeat customers are 107% greater than non-customers.
· It costs six times more to sell something to a prospect than to sell that same thing to a customer.
Laura believes the marketing dollar will go further if it is used to build, nurture, and develop current customer relationships. Building these relationships means treating customers and clients as if they are strategic partners and showing them that they are appreciated. It's important to try to satisfy them with the right products and services, supported by the right promotion and making it available at the right time and location. Customers can easily detect indifference and insincerity and they simply will not tolerate it. Long-term client and customer loyalty is a long-term challenge that you must strive for every day and with every transaction no matter how big or small.
While a growing business needs to constantly capture new customers, the focus and priority should be on pleasing the existing customer base.
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