What’s the definition of an expanding business? 

Most entrepreneurs will tell you that it’s one that’s gaining more customers over time. But that’s not necessarily true. 

Think about it: would you rather have 100 customers paying $50 each, or 200 customers paying $10 each? 

The answer is the former. 

The reason is that company growth doesn’t come from the number of customers, but revenue. 

Lamborghini, for instance, is a big company, but it only has a handful of customers. It’s large because everyone who buys from the brand spends a lot of money – hundreds of thousands of dollars at a time.  

So, expanding a business doesn’t just mean adding more people to your email marketing list. It also means getting your existing customers to pay more. 

There are actually very good reasons for selling more to your existing customers instead of trying to capture new ones. Thus, if you’re struggling to grow, it might be the strategic change of direction your enterprise needs. 

Existing Customers Already Want Your Products

Think about it: your existing customers have already shown you that they want your products. In other words, the fact that they handed over money means that they already have good reasons to buy from you. And so they are more likely to do so again. 

Most companies attract people who stand to benefit from their products and services the most. This means that gaining additional customers always becomes more challenging at the margin. Not everyone will feel like they’re benefiting from your products. And some will actually regret spending money with you. So putting your resources into acquiring them is often a waste of time. 

Improving your conversion rate optimization among your existing customers, however, will typically yield benefits. Mostly, these are people who already want your products and are likely to spend more if prompted. 

Remember, around 65 percent of all small and medium-sized business sales come from existing customers. And, they are also much more likely to try new products you introduce compared to people who haven’t bought from you before. 

It Keeps Retention Rates High

Customers will usually stick with a particular brand if they feel that it is offering them continued value. However, they also need regular reminders that you still exist. 

Focusing on your existing customers, therefore, continually reminds them of the value that you offer. The more you maintain contact, the more likely they are to come back to you regularly in the future. 

It Increases The Lifetime Value Of Your Customers

Once you capture a customer, the next task is to do whatever you can to maximize their lifetime value – how much money they will spend with you over the coming weeks, months, and years. 

Life-long customers are extremely valuable to your business because, once you acquire them, you no longer have to pay further acquisition costs. They’ll just keep coming back once they know you offer a quality product. 

Remember, it is multiple times more expensive to attract new customers than to keep old ones.