You have probably heard or seen the reports that suggest it can cost five to ten times as much to attract a new customer, as it costs to maintain repeat business from an existing customer.
A recent Gartner Group study suggests that a simple 5% increase in customer retention can result in a 75% improvement in profits.
But a Bain and Company Harvard Management Update reports that 80% of businesses believe they deliver a superior customer experience to capture repeat and referral business, while only 8% of their customers agree that these companies provide superior service.
While your customers are bombarded with messages from your competition, it makes sense to craft your advertising to attract new customers, but also keep you front and center with current customers.
Many businesses use internet tools like email or social media to pursue customer loyalty and use intrusive broadcast media to attract new customers. While that strategy is certainly valid, they often under-estimate what intrusive media, like radio, can do to serve as a reminder to their current customer base.
In marketing, customer perceptions become their realities. If 92% of customers don’t perceive you deliver superior service, they are vulnerable to the aggressive appeals in your competitor’s advertising.
There is a reason that successful businesses like McDonald’s, Home Depot, and Geico continue to invest more in broadcast advertising than they do online….they need new and repeat business.