Answer: Lower customer acquisition costs
That is one reason
Your businesses will thrive as you attract new customers, and you need to do this all the time. However, if you neglect your existing customers that can end up costing dearly. The cost of acquiring a new customer is up to 25 times higher than keeping one who has already made a purchase https://hbr.org/2014/10/the-value-of-keeping-the-right-customers
Its obvious really
It stands to reason, a customer who has made a purchase has already bought into your proposition and knows that you provide a great service and that you have a quality product
Keeping customers is better for business
Not only is the cost of acquiring a new customer higher than keeping one who has voted with his pocket and become your customer but a small increase of around 5% in your ability to retain customers will translate into over a 25% increase in profitability –some put this number as high as 125% see Higher Profits
Over two thirds of customers leave a brand or business that they have used in the past because they perceive that they are not valued as customers. Imagine that for every 100 customers that you have 68 feels that you do not care for them it can be very expensive to replace them.
Give your customers the best of you!
It goes without saying that having the very best in customer service, a keen pricing policy and of course products that everyone wants will go a very long was to making sure that customers who try you out will stay valued customers in the longer term
In a Fast moving world you have to keep up
However, the world we now inhabit is fast moving and the amount of offers that your customer receives daily is enormous. A tried and tested vehicle of maintain customer interest and that will encourage customer retention is of course launching a customer Loyalty Program. Customer Loyalty Programs will help you keep your customers from defecting. The Loyalty Program must be well thought through, easy to use and give your customer something that he finds valuable
Start thinking about the customers that you have today
Give them additional reasons to make a positive choice to return to you. It is only natural for some customers to defect. Try to find out why customers are moving and use this information to fine tune your customer retention program. Start planning a Loyalty program or if you have one begin to look at how it is performing for you and check to see what you can do to improve it