Retaining Clients Increases Sales | Ramblings of an e-trader

Friday 8 August 2008

Retaining Clients Increases Sales

Doing business online, I realize earlier on that returning buyers are way more important than acquiring new buyers. This is because a relation has been formed where two parties already trust each other. Since then, a good percentage of my sales are from returning buyers. They look me up, check my store, without even having to inform them of new updates. Best of all, they recommend my store to their friends.

This morning, I read an article on Reuters that confirms what I already know. Te article is actually on the Joint Venture between Javelin Marketing and Customer Management Systems, forming FAContact, whose primary role is to assist financial advisors to stay in touch with their clients. FAContact will do it via phone calls, email newsletters and personalized direct mailings.

Keeping in touch like these would help remind clients of their existing relationship with the financial advisors and it is proven that customer retention of only 5% would increase sales by at least 25%. So it actually is more worthwhile spending time sealing the relationship with existing clients than acquiring new ones though this is not to say that we should stop soliciting new businesses.

However, judging from this percentage, it would be a great loss if we are not able to retain our customers, no matter what services we are offering.

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