Do your clients realize it costs nearly five times more to acquire new customers than it does to retain current customers? Your prospects and clients may want to run ad campaigns to pull in new customers, but at some point, you should talk with them about marketing programs to sell more to existing customers.
Koyne Marketing, with influitive.com, has just released its 2017 State of Customer Marketing Benchmark Report. The report focuses on how B2B operators handle marketing to existing customers. Koyne’s numbers comes to light at a time when statistics from invespcro.com show that existing customers contribute a hefty boost to the bottom line. Specifically, these customers are:
- 50% more likely to try new products from your clients
- Likely to spend 31% more
Koyne’s data shows that businesses use activities like customer user groups/events (45%), newsletters (41%), and measuring net promoting scores (37%) to build loyalty and track customer satisfaction. B2B operators are also using cross sell/upsell campaigns (37%) and renewal campaigns (25%) to make sure customers stay with them.
When running these campaigns, Invespcro.com finds that enterprises are turning to the following media formats:
- Paid search 2%
- Online display advertising 4%
- SEO 6%
- Web retargeting 22%
- Mobile web 18%
- Mobile and web push notification 39%
- Social media marketing 28%
- Mobile apps 44%
- Website 16%
- Mobile message 58%
- Email 52%
As marketers know, it’s not enough to simply promote themselves and upgrades and renewals to existing customers. They should also be measuring the success of these efforts. Koyne analysts note the most popular customer marketing metrics being measured are the renewal rate (21.4%) and the revenue from upsell/cross selling (22.9%). Analysts also point out that customer-influenced revenue, which comes in via referrals is only being tracked by 12% of marketers. Yet, these same marketers rate this metric as being the third most important way to measure customer marketing effectiveness.
It’s not easy to establish a system to track referral-related revenue, but reps who are selling digital marketing services may be able to sell their clients on the idea. At the same time, reps should explore the topic of separate marketing activities and campaigns to help clients retain their most profitable sources of business – existing customers.