Grow Your Business With the Help of Your Existing Customers

The internet is packed full of articles, blog posts, infographics, and white papers aimed at helping local business owners attract new customers. Customer acquisition is crucial for any business, of course. 

But while you're focusing on attracting new customers, it's easy to neglect (or completely forget about) the reason your lights are on in the first place—your past customers. 

These are the loyal patrons, the repeat customers, the local faces that come back time and time again. Their value is often underestimated, but these customers are absolutely vital to the survival of your business. 

Existing customers hold a treasure trove of benefits that can propel local businesses toward success. They not only provide a steady flow of revenue but also serve as powerful advocates for your brand in their social circles.  

It's important that you not only understand the inherent value your loyal customers offer but that you also explore ways to further harness their potential. 

Existing customers are a local business's most significant source of revenue. According to research by Adobe, returning customers are responsible for 40% of a company's revenue while making up only 8% of its customer base. These customers already know your products and services, trust your brand, and are more likely to make repeat purchases. 

Acquiring new customers is a costly endeavor. In general, it's 5-10 times more expensive to acquire a new customer compared to retaining an existing one. Existing customers require less marketing spend because they already have a connection to your brand. 

Loyal customers can become brand advocates. Satisfied customers tend to share their positive experiences with friends and family, essentially acting as free promoters for your business.  

Existing customers tend to spend more. They are likely to make larger and more frequent purchases as they become familiar with your products or services. This increased spending can have a significant impact on your bottom line. 

Now that we've established the value of existing customers, let's dive into how local businesses can use digital marketing to ensure repeat business from these loyal patrons. 

Segment your email list based on purchase history, interests, or demographics. Tailored content and offers are more likely to engage and resonate with your existing customers. 

Use email automation to send personalized follow-up emails, reminding customers of their past purchases or offering exclusive discounts to show appreciation for their loyalty. 

Keep your social media profiles active and engaging by posting updates about your products, services, and promotions. 

Reward customers for their commitment to your brand by implementing a loyalty program. This could include sharing exclusive offers or events for past customers or offering sneak-peaks and early access to new products or services. 

Implement behavioral targeting—utilize data analytics to understand customer behavior and preferences. Use this information to create hyper-personalized offers and recommendations, improving the chances of repeat purchases. 

Local digital marketing is a potent tool for local businesses to maintain a thriving relationship with existing customers. Here's how it can help: 

Use location-based marketing to reach out to your customers with targeted messages. For example, a local restaurant can send special offers to customers in the vicinity during lunch or dinner hours. 

Optimize your online presence for local search. Ensure your business appears in local search results and maintain accurate information on platforms like Google Business Profile to help existing customers find you. 

Encourage satisfied customers to leave reviews (and display those reviews beautifully on your website) using tools like Locallogy's Review Builder. Positive reviews enhance your local reputation and attract new customers while also reassuring existing ones.  

Implement retargeting ads to show personalized product recommendations or reminders to existing customers when they browse the internet. It keeps your business top of mind and encourages repeat purchases. 

Participate in local online communities, forums, and social media groups. Engaging with your local audience fosters a sense of community and loyalty among existing customers. 

Existing customers are the backbone of your local business. They not only provide a steady stream of revenue but also contribute to word-of-mouth marketing, increased transaction values, and brand loyalty. When compared to the high cost of acquiring new customers, retaining existing ones is a more cost-effective strategy. 

Through effective digital marketing techniques, you can nurture and grow your existing customer base. Then, make use of local digital marketing tools like geo-targeting, local SEO, Review Builder, and retargeting ads to help maintain a strong relationship with existing customers, ensuring they keep coming back for more. 

Don't underestimate the value of your loyal patrons. Invest in strategies that prioritize their satisfaction and encourage repeat business. After all, the path to long-term success for local businesses often begins with the familiar faces that have already walked through your doors.