{"id":40203,"date":"2020-06-07T00:00:00","date_gmt":"2020-06-07T00:00:00","guid":{"rendered":"https:\/\/newrcblog.wpengine.com\/your-most-valuable-customers-are-the-ones-you-already-have\/"},"modified":"2025-03-13T06:26:29","modified_gmt":"2025-03-13T13:26:29","slug":"your-most-valuable-customers-are-the-ones-you-already-have","status":"publish","type":"post","link":"\/us\/en\/blog\/your-most-valuable-customers-are-the-ones-you-already-have\/","title":{"rendered":"Your most valuable customers are the ones you already have"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">During this unprecedented crisis, small and medium-sized businesses (SMBs) have been hit harder than many larger enterprises. As business owners decide whether to shut their doors or find a way to pivot, it\u2019s clear that the new normal is going to be different.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While many large corporations can float along on shareholder capital, smaller businesses can&#8217;t just \u201cgo back\u201d to the way things were. Acquiring new customers requires two of the resources most SMBs lack right now: time and money.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Fortunately, these businesses can still survive and thrive in today\u2019s new normal by focusing on one key area: existing customers.<\/span><\/p>\n<h2><b>Retaining customers to improve profit<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Building new relationships is important for any business,\u00a0but <\/span><span style=\"font-weight: 400;\">SMBs have to put a premium on customer retention, especially in the post-COVID-19 economy.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">First, let\u2019s look at the numbers:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Acquiring new customers <\/span><span style=\"font-weight: 400;\">is about <\/span><a href=\"https:\/\/www.forbes.com\/sites\/jiawertz\/2018\/09\/12\/dont-spend-5-times-more-attracting-new-customers-nurture-the-existing-ones\/#33debb905a8e\"><span style=\"font-weight: 400;\">five times more expensive<\/span><\/a><span style=\"font-weight: 400;\"> than retaining current ones.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Loyal customers spend <\/span><a href=\"https:\/\/media.bain.com\/Images\/Value_online_customer_loyalty_you_capture.pdf\"><span style=\"font-weight: 400;\">67% more than new customers<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">I<\/span><a href=\"https:\/\/www.bain.com\/Images\/BB_Prescription_cutting_costs.pdf\"><span style=\"font-weight: 400;\">mproving customer retention by just 5% can help companies increase their profits by 75%<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">When shelter-in-place became a reality earlier this year, the gulf between retaining and acquiring customers became even more pronounced. For many SMB owners who already had limited marketing and advertising budgets, the challenges imposed by the COVID-19 crisis made it all but impossible to bring in new business. Even as these businesses reopen their doors, customer behavior has changed\u2014probably permanently.<\/span><\/p>\n<h2><b>Personalization creates loyalty<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">But some SMB owners are reimagining the way they do business, with a huge emphasis on customer retention. Take Evet DeCota, a hairstylist and owner of <\/span><a href=\"https:\/\/salondecota.com\/\"><span style=\"font-weight: 400;\">Salon DeCota in San Rafael<\/span><\/a><span style=\"font-weight: 400;\">, California. DeCota has revamped her operation in a profound, but simple way. She realized that amidst the pandemic, she could offer something to customers on a personalized level \u2014 something that only <\/span><i><span style=\"font-weight: 400;\">she<\/span><\/i><span style=\"font-weight: 400;\"> could create thanks to her knowledge of them.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Within a week and a half of California\u2019s shelter in place declaration,, DeCota gathered the resources she needed to create customized hair color kits for her clients. She assembled the kits in her apartment kitchen. She worked with her building manager to allow her clients to come into the building, as long as they were wearing protective gear, and pick up the coloring kits outside her apartment door.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cThey ring my doorbell and then they stand very far away from me and tell me they miss me, and I tell them I miss them \u2014 and that\u2019s how that goes,\u201d she told RingCentral on a recent episode of <\/span><a href=\"https:\/\/www.ringcentral.com\/small-business\/blog\/that-changed-everything-episode-3-how-a-salon-stays-in-business-while-sheltered-in-place\/\"><span style=\"font-weight: 400;\">That Changed Everything<\/span><\/a><span style=\"font-weight: 400;\">. \u201cYeah, it\u2019s a little love fest.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Knowing her existing customers and meeting their demand in a personalized way has allowed DeCota to continue working with the customer base she\u2019s established during her long career as a hairstylist, even amidst the coronavirus crisis.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">And when the time comes to go back to some sort of normal, DeCota\u2019s customers will be there for the next phase of her business.<\/span><\/p>\n<h2><b>Putting a premium on customer retention<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Whether you\u2019re a large business or a small one, there\u2019s lots to learn from DeCota\u2019s example \u2014 not just her ingenuity and ability to spot trends, but also her knowledge that her most important and valuable customers were the ones she already has.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For SMBs with limited resources, this lesson is extra important. Never stop trying to acquire new customers, but work even harder to retain those you already have. Loyal patrons are the ones who will sustain you, especially when times get tough.<\/span><\/p>\n<p><i><span style=\"font-weight: 400;\">To learn what your company can do to keep your customers coming back, read RingCentral\u2019s guide, <\/span><\/i><a href=\"https:\/\/www.ringcentral.com\/small-business\/blog\/customer-retention\"><i><span style=\"font-weight: 400;\">8 Strategies to Improve Your Customer Retention Rate.<\/span><\/i><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>During this unprecedented crisis, small and medium-sized businesses (SMBs) have been hit harder than many larger enterprises. As business owners decide whether to shut their doors or find a way to pivot, it\u2019s clear that the new normal is going to be different.\u00a0 While many large corporations can float along on shareholder capital, smaller businesses &#8230;<\/p>\n","protected":false},"author":29,"featured_media":40204,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[17901],"tags":[],"class_list":["post-40203","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-leadership"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v19.3 (Yoast SEO v27.2) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Your most valuable customers are the ones you already have | RingCentral<\/title>\n<meta name=\"description\" content=\"During this unprecedented crisis, small and medium-sized businesses (SMBs) have been hit harder than many larger enterprises. As business owners decide\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ringcentral.com\/us\/en\/blog\/your-most-valuable-customers-are-the-ones-you-already-have\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Your most valuable customers are the ones you already have\" \/>\n<meta property=\"og:description\" content=\"During this unprecedented crisis, small and medium-sized businesses (SMBs) have been hit harder than many larger enterprises. 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