How to Innovate in Marketing (Collection), 2/e

15. Love Your Loyal Customers

Many companies are focused on finding and selling to new customers, but the smartest companies concentrate on keeping their existing customers and growing their relationships with them. Here’s why:

• It is five times more effective to sell to an existing customer than it is to find a new customer.

• Customer loyalty drives profitability. It is estimated that keeping a customer can increase profits between 25 and 80 percent.¹

• Loyal customers make repeat purchases.

• Loyal customers tend to buy across your portfolio of products and services.

• Loyal customers give referrals.

• Loyal customers tell their friends and spread good will.

• Loyal customers are immune to the pull of competition.

• Loyal customers require ...