If you’re like most small business owners, you’re likely focused on attracting new customers. While new business is important, many overlook a critical opportunity: marketing to existing customers. It’s a strategy that’s not only cost-effective but also much easier to execute.
In this article, we’ll explore why your current customer base is your best market and how focusing on three simple numbers—10% more customers, 10% more spend, and 10% more frequent purchases—can grow your business by over 30%.
Why Market to Existing Customers?
Here’s the reality: it’s much easier to sell to someone who has already bought from you. They know you, trust you, and are more likely to purchase again—especially if you give them a good reason.
Despite this, research shows that fewer than 25% of small businesses regularly market to their existing customers.
And this is a mistake that leaves many small businesses struggling.
You see, ignoring your customer base isn’t just a missed opportunity; it’s a potential threat to your long-term success. Customers have plenty of options, and if you don’t stay on their radar, a competitor could easily swoop in.
Marketing to your existing customers isn’t just a “nice-to-have”—it’s an essential component of sustainable business growth.
The 10% Rule for Business Growth
Want to grow your business by over 30%? Focus on these three simple metrics:
- Get 10% More Customers
Attracting new customers is still part of the equation, but it doesn’t need to dominate your strategy. Even a modest increase in new customers can make a difference. - Increase Customer Spending by 10%
Encourage your customers to spend slightly more each time they buy. This could be through upselling, offering premium options, or bundling complementary products or services. - Boost Purchase Frequency by 10%
Get customers to buy from you more often. This could involve email marketing campaigns, loyalty programmes, or simply staying in touch with regular promotions and offers.
If you achieve these three small improvements, the compounded effect is a 33.1% increase in your business. That’s growth without the headache of chasing down leads in a competitive market.
How to Start Marketing to Existing Customers
Here are some practical ways to connect with your current customers:
- Stay in Touch: Send regular emails to keep customers updated about your products, services, and offers.
- Make It Easy to Come Back: Offer incentives like special offers, loyalty rewards, or exclusive perks for repeat buyers.
- Show You Care: Personalise your communication. A simple “thank you” or checking in with customers can go a long way.
- Upsell and Cross-Sell: Highlight related products or services that complement their past purchases.
The Risks of Ignoring Your Customers
Assuming that your customers will automatically return is a mistake. Customers are savvy, and if you’re not giving them a reason to stick around, they’ll find someone else who will. Whether it’s a better offer, a more engaging experience, or simply a competitor who’s more visible, your customers won’t hesitate to move on.
Keep It Simple
Growing your business doesn’t have to be complicated. By focusing on your existing customers and implementing the 10% Rule, you can see significant results with minimal effort.
Remember:
- Existing customers are your easiest market.
- Marketing to them is cost-effective and highly rewarding.
- Even small changes in spending habits and frequency can lead to big growth.
Start today. Reach out to your current customers, create a plan, and make consistent communication a priority. It’s one of the simplest and most effective ways to grow your business sustainably.
Got questions or need help implementing these strategies?
Give us a call on (679) 7251599 and let’s chat.