With modern industries and markets rapidly expanding, evolving and blending, there is a relentless push for organisations of today to continually uncover and tap new customer demographics. However, is this always the best tactic?
While pursuing new target customers is a solid strategy to ensure growth, there are countless reasons why it’s even more important for organisations to not forget their existing customer base.
For one thing, it’s more cost effective to market to customers who already know and trust your brand, especially with the rise of social media. If an organisation has already spent a sizable budget on a cultivating a current customer base and meeting their needs, then it can be a missed opportunity to not nurture these relationships before deciding to move on.
Secondly, focusing on existing customers builds a positive reputation within that niche; it’s better to be a sound player in one area, than an unknown in several. With the ‘rapid expansion’ strategy, an organisation may lack the resources to cater to so many groups of different people, and that can be detrimental to the organisation’s standing, especially today where customers expect so much more from brands in terms of individually tailored messaging and content.
Barriers Of Entry
Thirdly, the barriers of entry into a new demographic and customer group can be high, and so the most effective strategy is to weigh up whether the leap is worth it, or whether there is more to be gained by nurturing the currently loyal customers and keeping them engaged (the latter is usually the better choice).
It’s All About The Customer
It’s important for all businesses to remember that it’s all about the customer, and if they can add value to their current customers’ lives, whether it be a new product, a line extension, engaging content or loyalty programs, this manifests into brand loyalty, and active followers.
These brand ambassadors are a highly valuable commodity in any market, and so an organisation must not forget to continue to foster these relationships before looking out into the horizon. More often than not, the actual value of a current customer base is never truly realised because organisations are too busy trying to find their next potential group.
CRM And Customised Content
This is why it’s so important for organisations today to build a comprehensive CRM (Customer Relationship Management) system to track interactions with customers and gain valuable insight into their behaviour, so that an organisation can cater their Marketing efforts on a more individualistic level. The future of Marketing is well-written tailored content, and an effective CRM system will ensure that the organisation’s current customer base is continuing to be accommodated to, so that they remain loyal and positive, and the organisation sees success as a result.