Should you focus on “new” or “existing” customers?
People often ask: “Should I focus on new or existing customers?”
The answer to this question is not always black and white. It depends on the business, industry, and the current state of the market as well as your branding, USP, and current set of competitors.
A lot of businesses are still focusing on acquiring new customers and neglecting the ones who have already been acquired. This is a big mistake because these existing customers are also highly profitable clients and can promote your brand through Word of Mouth Advertising. Other than that, existing customers are more reliable buyers as they are most likely to take an action and make a purchase when you offer them a discount or a valuable deal, as compared to new customers that have never purchased from you before.
Focusing on New Customers can prove to be beneficial for your business in the following aspects:
- Heighten Brand Awareness
- Increase Sales and Profits
- Increased Brand Recognition
- Improving your industry experience
Whereas, focusing on existing customers can
- Help in decision making
- Improve Customer Loyalty
- Give clarity on brand likability
While focusing on new customers expands your brand’s horizons, accommodating your existing customers speaks highly of your brand value and can in a way attract a newer audience.
The best course of action is to do both. With the help of a good Digital Marketing Agency, you can run different campaigns to target specific audience types for the best results.
As a business, you should aim for a good balance and strategic approach towards new and existing customers so that you can find a healthy balance between growth and profitability.
If you’re looking to understand the best ways to expand your customer base while taking care of your existing audience and getting the best conversions, click here to consult with the Experts at Eighty Six Media.