Marketing Automation platforms, like Eloqua, Marketo, Silverpop and Pardot, have matured. The depth and breadth of features go way beyond basic functioning email and landing pages with basic reporting used to capture, nurture, score and route new leads. As I was researching data to support a new business initiative for a client, I came across many stats that build a strong case to use marketing automation for loyalty to increase sales.
Yes, we have been building advanced nurturing programs to up sell and cross sell for many years now. Yes, using real time activity triggered emails to increase engagement can create greater loyalty and keep your brand top-of-mind. But most users of marketing automation have just been focused on net new lead generation so this is a reminder, with stats, to not forget your existing customers.
#1. The probability of selling to an existing customer is 60 – 70%. The probability of selling to a new prospect is 5-20%. – Marketing Metrics
#2. A 2% increase in customer retention has the same effect as decreasing costs by 10%. – Leading on the Edge of Chaos, Emmet Murphy & Mark Murphy
#3. Customers who rate you 5 on a scale from 1 to 5 are six times more likely to buy from you again, compared to ‘only’ giving you a score of 4.8. – TeleFaction Data Research
#4. A 5% reduction in the customer defection rate can increase profits by 5 – 95%. – Bain & Company
#5. It costs 6–7 times more to acquire a new customer than retain an existing one. – Bain & Company
#6. eCommerce spending for new customers is on average $24.50, compared to $52.50 for repeat customers. – McKinsey.
If you are a marketer with a revenue quota, existing customers are a gold mine. Think like a sales rep, go after the low hanging fruit.