Conventional wisdom dictates that existing customers are valuable, but sometimes that wisdom becomes the baby tossed out with its bathwater when customer acquisition hikes its way up the priority list. Social media marketing service Flowtown (our review) thought it would be interesting to see just how valuable those customers are, so they put together some noteworthy data summaries.
The takeaway? Don't toss the baby. It's your moneymaker.
Flowtown's chart argues that not only do loyal customers give businesses a competitive edge, but they can be pretty profitable (especially when you factor in the cost of new customers, which can be 6-7% higher than your existing base). It's a sentiment that's being felt all-around especially when companies like AmEx tell us they see entrepreneurs shoring up losses by engaging with, retaining, and reaping the rewards of mining existing customers.
Flowtown's findings seem to back this up. Click below to view the company's infographic full-size on the Flowtown site.
http://readwrite.com/2010/10/19/the-value-of-an-existing-customer
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