A vast majority of businesses tend to cater their advertisements to new customers. On the surface, this seems perfectly reasonable – the more customers a business receives, the more potential sales they bring in, right?
What many business owners don’t realize, however, is that studies show 80% of a company’s sales are brought in by just 20% of their customer base. This means that, by far, most of your business’s revenue comes from the patronage of loyal, repeat customers. Recognizing the value of your repeat customers can ultimately lead to a more predictable profit cycle, allowing you to better understand your points of success and market your business more effectively.
While businesses will always strive to welcome new customers, shifting your marketing strategy towards your most dedicated visitors can carry a wide range of benefits – and, in turn, they can even market your business to new customers for you. Here are three reasons why it might be wise to target repeat customers in your upcoming advertising campaigns, and how you might be able to do so effectively.