How to Target Your Existing Customers

Why are existing customers the most valuable?

A purchase is a purchase, and a dollar in your pocket is the same no matter where it came from—so why focus on previous clients? While it’s true that any purchase is a win for your business, existing customers represent a higher value than new customers.

This is in part due to the cost associated with gaining new customers. Commonly referred to as CAC (customer acquisition cost), a brand new customer costs you more up front and has a higher risk of not converting. According to ProfitWell, CAC for both B2B and B2C is more than 60% higher than it was 5 years ago.

Not only is it less costly to market to your existing customers, but those customers are more likely to net you a higher profit. Research shows that your existing clients are 50% more likely to try out a new product, and they spend 31% more than new leads.

Target your existing customers

Too often, businesses neglect their existing customers when they build out their marketing strategies. They focus on connecting with new customers and looking for the next viral strategy to tap into unreached markets.

While expansion is important, investing your marketing spend in your existing customers is more likely to result in a high return. Targeting current customers can take many forms, but it should always begin with a deep dive into your customer data. Look for the following information:

• Common questions your clients ask about your products or services
• The keywords that drive existing customers to your website
• The demographics of your customers
• Your customers’ interests
• What other brands and websites are vying for the attention of your customers
• The channels your customers prefer for interactions, whether that be social media, chat, text, or email

All this information can help you better tailor your approach. From here, you can build a retargeting campaign using one or several of the following tactics.

Create a content strategy that answers your customers’ questions

Based on the data you’ve gathered, you should have a good idea of the questions your customers commonly ask. From here, you can craft a robust content strategy that answers these FAQs and positions your brand as the right choice based on the information they’re seeking.

For example, if you sell winter gear and see a trend in your customers’ search for information about the durability of your product, you could launch a campaign dedicated to answering these questions. You might write a blog post highlighting the high quality of materials you use to create your gear. You could pair this with a social media campaign that shows your winter gear in action. Next, you could incorporate an email marketing campaign that sends your customers to your website to learn more about your products and provides them with a buying guide.

The beauty of figuring out what your customers are asking is that you can create a strategy that answers them. By providing the information they’re looking for, you’re reestablishing your brand prominence in their mind.

Reward your customers with a loyalty program

A loyalty program that rewards people for purchasing items from your online store is a great way to show customers how much you appreciate them.

You could start small by creating a list of existing customers and sending them a promotion or discount code that they can redeem on their next purchase. Then, over time, you might expand your program by offering limited-edition products, exclusive events, and more.

After each promotion, use the data you’ve collected to learn how effective your incentive was at driving additional sales. This will teach you more about your customers’ behaviors—and what types of loyalty incentives drive the highest returns.

Invite your customers into your product research

As you’re brainstorming new products or services, consider giving your customers an opportunity to share their feedback and insights. Not only can this help show folks that you value their opinion, but it can also help ensure that you’re creating items that your existing customers want to buy.

Build a landing page on your website that invites customers to sign up to provide ongoing feedback through surveys, test groups, and more. Then, start with a small task, such as asking your customers for feedback about a product they purchased. Use this feedback to improve your products and make your customers feel like they’re a part of your company’s future. Over time, you can expand your program, inviting your top contributors to test out new products or to help you research new ideas.

Maintain a brand identity that engages and resonates with your customers

You’ve worked hard to develop your brand identity and bring in customers. Don’t lose that momentum by straying from your brand propositions. Your customers return to you not just for your product or service, but because of the emotional connection you’ve built with them—they trust you.

With the demographic data you gathered and your knowledge of what your customers are interested in, you can nurture this connection. Showcase how your company is involved in causes or issues that resonate with your audience—and don’t be afraid to let your brand have a personality that shines.

Market to existing customers

You know what works best for you and your customers—and if you don’t know, you can find out with analytics, surveys, and more. Then, with your audience and marketing data in hand, you can devise campaigns using different channels to reach your customers wherever they are.

A segmented email marketing campaign

Email is an effective way to connect with your audience, especially when combined with segmentation tools that allow you to home in on a particular subset of customers.

For example, let’s say an online clothing boutique collects email addresses at checkout and invites customers to opt into a monthly newsletter.

Using their email marketing tools, the shop creates a segmented list of customers who have purchased items from a specific collection. Each month, the newsletter features additional items from that collection, along with clothing guides, seasonal trends, and other topics relating to their customers’ interests.

Throughout this email marketing campaign, the boutique includes shoppable content and one-click sales to help drive conversions. The end result is that their existing customers—who are already more likely to convert—have the chance to purchase additional pieces from a collection they already know and love.

A temporary, highly-focused content strategy

If you find that many of your customers have similar questions about your products, you could address them all at once by narrowing the focus of your content for a limited time.

Imagine that an online store selling skincare products has noticed a trend in their customers searching for “sustainable skincare options.” They also notice that their customer base frequently asks, “Is XYZ product a sustainable choice?”

To address these concerns, they decide to launch a month-long content marketing campaign. They publish blogs and social media posts highlighting the sustainable practices used to create their products. They even partner with a trusted third-party expert to give their customers an in-depth explanation of product sustainability.

With their most pressing questions now answered, customers’ trust in the brand grows—as does the likelihood of making additional purchases from the store. They may even share their experience with friends and acquaintances, bringing about new business.

Start focusing on your existing customers today

Attracting new customers is important for any business, but marketing to existing customers is crucial, too. And since existing customers are already familiar with your business and products, marketing to them can mean spending less money while earning a higher return on your investment. The key is to get to know your customers, anticipate their needs ahead of time, and then target them with relevant, personalized content that makes them feel appreciated and drives them back to your store time and time again.

Mailchimp’s all-in-one Marketing Platform has tools to help you build your e-commerce store, research and segment your audience, send personalized emails, post to social media, and more. Choose a plan and get started today.