Download and customize hundreds of business templates for free
Traditional sectors like manufacturing or retail can apply the concept of Customer Base Penetration for growth by focusing on their existing customers. This involves understanding the Customer Lifetime Value (CLV) and working towards increasing it. The cost of acquiring a new customer is significantly higher than retaining a current one. Therefore, by focusing on existing customers, these sectors can reduce acquisition costs and improve customer loyalty. This can be achieved by offering new products, special deals, or superior service to existing customers. Additionally, capturing market share from rival brands can also contribute to growth. However, this strategy requires a strong customer base and sufficient customer data to create accurate Voice of Customer (VOC) profiles.
Question was asked on:
In the rush to acquire new customers, organizations can ignore the Customer Lifetime Value (CLV) of their existing customers. Acquiring a new customer costs between five to twenty-five times more than retaining a current customer. Further, loyal customers are five times more likely to purchase again, five times more likely to forgive and seven times as likely to try new products. Focusing on Customer Base Penetration can provide untapped growth opportunities with reduced acquisition cost while improving customer loyalty. This is among the safest of the ten paths with a high probability of success. However, this path can be executed only when there is a strong customer base to penetrate and sufficient customer data to create accurate VOC profiles with customer attitudes and interests. Customer Penetration includes capturing market share of rival brands.
Asked on the following book summary:
How do you find the right strategy to grow your organization in a rapidly changing business environment? "Growth IQ" distills decades of tested strate...
Download and customize hundreds of business templates for free
Customize our new Sales Review presentation to motivate your team. Use our Sales Review presentation to summarize findings from the year’s performance and lay out the blueprint for a more productive and fruitful year ahead.
How do some companies seem to grow exponentially? Viral strategies. Use our Viral Strategies template to incorporate a high growth mindset to scale your product, bring in more customers, and reduce the cost of acquisition as you move along. See how you can use simple calculations like viral coefficient, cycle time, branching rate, to find the right growth opportunities.
How do you gain and retain customers? A lucid, concise proposal makes all the difference in your practice. Use our Consulting Proposal presentation to share your expertise, solutions and terms, and outline your working relationship with the client to ensure that both parties stay aligned and understand each other’s expectations and deliverables.
How do you juggle multiple high-priority tasks across an entire sales lifecycle? A well-balanced strategy. Plan, analyze, market, and drive your sales team with this Sales Strategy deck. Segment your target customers and organize your sales team to maximize returns. And don’t forget to use sales control tools to assess performance and improve progress.