ATLANTA, GA / ACCESSWIRE / October 26, 2020 / A business cannot function without customers, but not all customers represent equal potential to become repeat and loyal customers. While all customers are important and acquiring new customers should always be a goal for any growing businesses, focusing on customers most likely to return to your business is important to increasing efficiency and return on investments across the board.
"Companies should treat every customer with respect, attentiveness and a commitment to providing a positive experience. But when it comes to promotional efforts, it's critical to focus efforts on the customers who are likely to provide the greatest return on your marketing investment," says Deepak Agarwal.
A C-suite executive and retail entrepreneur, Deepak "Dee" Agarwal cannot understate the importance of ROI-driven customer acquisition in any business' long term plans. One way to understand this is through calculating how much it costs to convert a prospective customer into a buyer, and how likely it is for that customer to return to your business again and again. If this cost outweighs the likely revenue they would generate, Agarwal sees this as a critical error.
"To ensure that your customer acquisition strategy is guided by ROI data, keep your marketing efforts focused and targeted," says Deepak Agarwal. "This requires using data to understand what your customers care about, where they can be reached, and what messages resonate with them. By creating a clear picture of your ideal customer with well-sourced data and insights, you will make better use of your time and resources."
Deepak Agarwal suggests focusing on improving ROI by reducing customer churn. Also known as customer attrition, customer churn focuses on the point at which a customer is lost, or when they choose to opt out of your products or services.
"There is immense benefit in spending on customer retention. Once you have attracted the business of a customer, it is far more efficient to retain that customer, rather than earn a new one," noted Deepak Agarwal. "When the consumer is familiar with your brand and its value, your budget will not have to work as hard for the sale."
While retention strategies are important in any business and industry, the focus should always rest on keeping existing customers happy by providing value, and communicating their importance to your business.
"Find ways to give customers the types of treatment that encourage them to come back for more," said Deepak Agarwal. "Establish a loyalty rewards program, provide exclusive benefits or services, and integrate user generated content, or UGC, into your content pipeline to demonstrate customer appreciation. This approach not only supports retention, it also can turn clients into brand advocates that will spread positive word-of-mouth that may result in new customers."
For more expert tips from Deepak Agarwal, read Top 5 Tips to Master Social Media in Online Retail.
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SOURCE: Deepak Agarwal