Customer Database Management using HubSpot

Many of us know that it is more likely for an existing consumer that is familiar with a brand to purchase as compared to a consumer that does not know the brand at all. Moreover, the costs of acquiring new customers are much higher than the cost of retaining existing customers. Hence, creating brand loyalty is an important part of every business to build a strong brand and a positive relationship with existing customers, increasing the chance of them repurchasing. Using customer retention strategies and measuring effectiveness by evaluating customer relationship information can help with creating brand loyalty.

The probability of selling to a new potential customer is around 5% to 20%, much lower as compared to the probability of selling to an existing customer of 60% to 70%. The probability of selling to an existing customer is 3 to 5 times more, which shows the importance of customer retention. (source: MARKINBLOG)

It can be seen that acquiring a new customer costs up to 7 times more (depending on the business) than retaining an existing customer. This is because an existing customer likely trust and like the brand hence needing less marketing efforts to persuade them to repurchase. Also, when marketing towards new customers, more time and effort is needed to get their interest, resulting in a lower return on investment (ROI). (source: MARKINBLOG)

There are still companies only focusing on gaining new customers instead of including retaining existing customers in their marketing plans. Not only will existing customers have a higher probability of purchasing and cost less to market to, but it can also act as a customer acquisition strategy through referrals to new customers. This thus stresses the need for companies to create brand loyalty.

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