The cost of new customers vs the value of loyal customers

the cost of new customers vs the value of layal customers


Over the years I have owned many businesses. Some relied on returning customers and my bridal hair and makeup agency hoped never to see that same girl get married again…. But a loyal customer doesn’t need to buy from you. A loyal customer can become a raving fan. So as much as it is important to understand your customer buying cycle, you need to treat every single customer as if you need thier business to survive. The better you treat them the more likely they will buy from you again and hopefully tell others about you.

Business owners often spend more money on getting new customers and forget about that person once they are a customer. It’s amazing considering the probability of generating a sale from a new customer is between 5-20% while the probability of making a sale from an existing customer is between 60-70%!

I think if you understood your customer’s buying cycle you would be pleasantly surprised in how much you can make from your current customers. Repeat customers spend an average of 33% more than new ones.

Most businesses do 1 or both of the following:

1. Don’t train thier email leads to buy from the beginning – Too many businesses collect leads and sit on them for months before selling to them. I have seen this happen where suddenly leads are asked to buy after not hearing from the business, or getting lots of free information, and then that lead gets upset as there has been a sudden change in the communication. It is important to set the communication standard from the beginning.

2. Don’t have a sales funnel in place – What else can your customer buy from you that is complementary to what you sold them? Or maybe a person was looking at something then decided against it. Can you sell them a “downsell”? Something cheaper, smaller, a little different? Or maybe they are purchasing something, do you have a cross sell? Some of my clients does this very well. Every item is linked to another product “You may also want xxx”. Amazon does this well also. Without a sales funnel you could be missing out on a lot of extra profit for little extra work! And these days with the automation of online sales there is no excuse for it.

Take a look at the chart above and work out which side you would rather be on.




I rescue entrepreneurs from overwhelm and help in creating their marketing & business strategy to create the perfect lifestyle business. With over 15 years of marketing and business ownership experience I know all about the highs and the lows of being in business. I am not a business coach in the normal sense, I am more of a marketing coach/mentor for online businesses. After having been through the ups and downs of business my biggest piece of advice for the fastest way to success is with the help of someone who has been there before. I have been fortunate enough to be sought after as an expert in my industry and been seen on channel 9, published in magazines such as Vogue & Women’s Day and have spoken on many stages for high level business events. I understand how to grow and sustain a business long-term. With a background including marketing, PR and experience in a wide variety of businesses which provides a very powerful combination that helps her leverage my clients potential. Specializing in lead generation by creating savvy automated sales funnels and outstanding sales pages, which will attract an audience, build your customer list, and generate revenue. I believe the key to success is planning.