The Value of a Returning Customer

Customer Referrals!

Would you like to sell to yourself?

The world of business has changed, specifically, the way we engage as people and how we interact with vendors and consumers.

To the consumers and vendors reading this, ask yourself - how much have you changed the way you buy? Would you like to sell to yourself? Do you think your business would do a good job of selling to you?

How has the way we buy changed? In the same way that technology and the Internet have changed our everyday lives, they have changed our buying experience too.

  • Peer reviews are now the most trusted source of information on a purchase and continue to rise in importance. 
  • 84% of buyers said they seek input from peers and existing users, while 57% do so within the first three months of the buying process before ever talking to the vendor they are buying from.

This means that vendors have less and less control over buyers' first impressions. As a result, the impact of a bad customer experience is hugely multiplied. Sources also tell us that 95% of people usually tell at least one other person about a bad customer experience, 54% share it with at least five other people and 80% of customers won't buy from companies with a negative review. 

In this hyper-connected world, you are only as good as the last customer review. 

The value of the recurring customer

Did you know it costs five times as much to attract a new customer as it does to keep an existing one? Statistics tell us that you are 14 times more likely to sell to an existing customer than a new prospect.

Plus, existing customers are 50% more likely to try new products, and spend 31% more when compared to new customers. The odds are that your next sale will come from an existing customer, or from a new customer who already knows you from an existing customer referral or review. 

This intelligence and data help guide our vision for a modern CRM; one that delivers results and works effectively in a world where the impact of a bad customer experience can be devastating, and where recurring customers are often your best source of new business. 

In our opinion, an ideal CRM is one that recognises the value of recurring customers. We believe that the first transaction is just the beginning of a relationship. CRM must enable you to create a seamless experience for the customer, building better business relationships. 

And in all of this, we're very proud of the relationship we've built with you, our customers. 

To find out how Sugar can help you manage your customer relationships, use the form below to request a Free Demo.