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How to grow your customer base? 7 effective ways

customer base

customer base

In a highly saturated and competitive market, it's challenging to stay ahead and constantly grow the user base and retain loyal customers. Company owners like you are constantly seeking ways to expand their customer base and retain the existing ones, as the likelihood of selling to a repeat customer ranges from 60-70% compared to the 5-20% chance of selling to a new potential customer.

In this article, we will go through the concept of a customer base and share seven effective ways to grow your customer base and maintain the existing one.

CodeDesign is the leading digital marketing agency in Lisbon Portugal.

What is a customer base? 

How to Expand Your Customer Base?

How to Expand Your Customer Base?

A customer base comprises individuals who regularly purchase your company's products or utilize its services. These customers engage with your business frequently and contribute the most significant financial value. Depending on your industry, your customer base can either be a specific group or a target audience defined by a buyer persona.

Having a defined knowledge of your target persona and customer base is vital and incredibly valuable to your business. Understanding and acknowledging these will empower your marketing, sales, and customer service teams to foster a productive and lasting relationship with your customers.

Within your customer base, there exists a subgroup known as the installed customer base. These customers are at a particular stage in the customer journey that sets them apart from the rest of your customer base. Read this complete guide on digital marketing funnel and then choose the right digital marketing channel for your business.

Customer Base vs. Installed Base

The installed base refers to the group of users within your customer base who are actively using your products. Unlike the general customer base, this group excludes individuals who have not made recent purchases or are not actively engaging with your business's offers. Identifying these customers will enable your company to provide timely services, thereby enhancing customer retention.

In order to find potential prospects and increase the lifetime value of existing customers, you need to balance lead acquisition and customer retention. Let's see how we can do it!

Seven effective ways to grow your customer base and retain existing ones

retain existing customers

How to retain existing customers?

Offer excellent 24/7 customer service.

Every customer, whether reaching out about their first or tenth order, deserves equal importance when contacting customer support. It is crucial to treat each customer with respect and take appropriate action. Providing exceptional 24/7 customer service ensures customer satisfaction and amplifies positive word-of-mouth, as happy customers are likely to share their experience with at least three friends. This, in turn, leads to increased sales.

As your customer base grows, your customer service team must adapt to meet the rising demand. One approach is to hire additional representatives to handle service requests.

However, this option is expensive and time-consuming. Instead, you can leverage customer service tools to enhance your existing team's capabilities without hiring new employees.

Consider influencer collaborations.

Consider partnering with an influencer or a respected professional in your industry to expand your customer base.

Identify influential individuals or experts in your industry who possess significant authority and a substantial following. These are the individuals you believe can effectively engage with your target audience.

Once you've identified these individuals, collaborate with them on various projects, create compelling content, and seek their recommendations and endorsements for your products or services.

This strategy will enable you to reach a broader audience and gain enhanced credibility among their followers. Check these Amazon FBA tips to grow your business and see how optimising your Amazon listing could help you grow. 

Personalize your customer experience.

If customers perceive that your business is solely focused on maximizing profits from them, you will fail to earn their loyalty. They will probably switch to a new opportunity as soon as it arises. However, treating them as valued customers makes them more likely to remain dedicated to your business.

An effective approach to demonstrate your concern for them is by implementing personalization. Utilize customer profiles to equip customer service agents with information about the individuals they interact with. Important details to consider includes the following:

- The customer's location

- Previous issues they have reported

- Purchase history

When executed correctly, this personalized approach will lead to higher customer satisfaction and increased engagement with your company.

Encourage customer referrals

An effective strategy for expanding your customer base is through word-of-mouth marketing (WOM), a cost-free form of advertising that relies on your customers' genuine recommendations and experiences to naturally promote your brand, product, or service. Essentially, satisfied customers can turn into enthusiastic advocates for your brand.

To harness the power of WOM, implement a referral program that offers rewards to customers who refer new clients to your products and services. This approach encourages your existing customers to spread positive word-of-mouth and bring in new customers.

Consider tailoring your incentives based on your business's nature and customer motivations. These incentives could include service discounts, complimentary products, or plan upgrades. Read this guide on E-commerce supply chain and voice search optimization.

To ensure the success of your referral program, establish a reliable tracking system that swiftly and accurately issues rewards. Customers may lose interest if they do not promptly see their efforts' benefits.

Collect customer feedback

Understanding your consumer base and their conversations enables you to better understand their perspectives and identify opportunities to enhance your service in their day-to-day lives. It provides valuable insights, ultimately leading to increased business from these customers.

Customer feedback is a crucial strategy to boost engagement with your customer base. Positive feedback highlights your strengths, which can be emphasized to attract potential customers, while negative feedback reveals areas for improvement and customer retention.

Monitoring customer feedback closely helps you identify what your customer base values the most about your company.

Collect service feedback after closing a support ticket, customer service interaction, or even after purchase to evaluate the effectiveness of your sales team's efforts.

There are various effective methods to gather customer feedback, such as post-purchase or service surveys. NPS surveys are beneficial as they provide qualitative and quantitative customer data. 

Create a customer loyalty program.

Your customer loyalty program is a valuable tool for customer retention and acquisition. It enables you to keep your most dedicated customers engaged with enticing promotional offers, providing a competitive advantage compared to other companies in your industry.

In fact, studies show that loyalty programs significantly impact consumer decisions, with 69% of customers stating that such programs influence their choice when exploring new brands.

One effective strategy to optimize your customer loyalty program involves implementing a tiered membership structure. This approach encourages customers to continue their purchases and fosters a sense of community as they progress through different levels of loyalty.

Each tier should offer unique rewards, with the value of these rewards increasing as customers advance to higher levels. This is where your team can assess the customer's lifetime value and determine the amount they need to spend at your business before being recognized as one of your most loyal customers.

Leverage social media marketing and promotions.

Leverage social media marketing at its best. Social media marketing and promotions can do wonders in helping you onboard new users and engage the existing one. According to the Brandwatch survey, on Facebook alone, the average user has around 338 friends. Whenever you post fresh content, introduce a new product, or initiate a campaign, make sure to distribute it through your active social media platforms. By this your brand can reach millions of people and attract potential prospects to your business and generate interest in existing ones to make new purchases. 

FAQS - Frequently Asked Questions

What is a customer base, and why is it crucial for my business?

A customer base refers to the group of people who regularly purchase goods or services from a business. It is crucial for any business because it represents a significant portion of the company's revenue. A robust customer base provides a stable and predictable income stream, enabling businesses to plan for growth and development with greater certainty. Moreover, understanding and expanding your customer base can lead to improved customer insights, allowing for the creation of targeted marketing strategies and personalized product offerings that further enhance customer satisfaction and loyalty. In digital marketing terms, a well-defined and engaged customer base can significantly amplify your marketing efforts, providing a solid foundation upon which to build and execute advanced marketing strategies, such as personalized email campaigns or targeted social media advertising, resulting in higher conversion rates and increased ROI.

How does offering 24/7 customer service help in growing my customer base?

Offering 24/7 customer service significantly enhances the customer experience by ensuring that help is available whenever it is needed, regardless of time zone or geography. This level of support can be a key differentiator in a crowded market, as it demonstrates a commitment to customer satisfaction and builds trust in your brand. A positive customer service experience can lead to increased customer loyalty, more positive reviews, and word-of-mouth referrals—all of which contribute to growing your customer base. Moreover, with the integration of technologies like chatbots and AI-driven support systems, providing round-the-clock service can also offer insights into customer behavior and preferences, facilitating the optimization of products and services to better meet customer needs.

Can influencer collaborations effectively expand my customer reach?

Influencer collaborations can be a highly effective way to expand your customer reach. By partnering with influencers who have a large and engaged following within your target market, you can introduce your brand to a broader audience in a more authentic and trusted manner. Influencers can create content that showcases your products or services to their followers, leveraging their credibility to enhance your brand's appeal. This strategy can lead to increased brand awareness, higher engagement rates, and, ultimately, a larger customer base. For instance, clients at Codedesign have leveraged influencer collaborations to tap into new demographics and significantly boost their market presence, demonstrating the power of influencer marketing when executed strategically.

What role does personalization play in enhancing customer experience and loyalty?

Personalization plays a pivotal role in enhancing customer experience and loyalty by making customers feel valued and understood. Tailoring products, services, and communications to meet individual preferences and needs shows that a brand pays attention to its customers and is committed to providing them with relevant and meaningful experiences. This can significantly increase customer satisfaction, encourage repeat purchases, and foster a strong emotional connection to the brand. Data-driven personalization strategies, such as targeted emails, personalized product recommendations, and customized offers, not only improve the customer journey but also lead to higher conversion rates and customer retention. In the context of digital marketing, personalization is a powerful tool that enables businesses to stand out in a competitive market and build a loyal customer base.

How can a customer referral program benefit my business?

A customer referral program incentivizes your existing customer base to introduce your products or services to new potential customers, effectively leveraging their networks to expand your reach. Such programs benefit your business by increasing your customer base at a relatively low cost compared to traditional marketing channels. Referral programs often lead to acquiring customers with a higher lifetime value, as people tend to trust recommendations from friends or family more than advertising. Furthermore, these programs can enhance customer loyalty by rewarding existing customers for their referrals, creating a virtuous cycle of engagement and growth. Codedesign's implementation of referral programs has shown they can be a highly effective strategy for both customer acquisition and retention, contributing to sustained business growth.

What are the benefits of collecting and acting on customer feedback?

Collecting and acting on customer feedback is essential for continuous improvement and customer satisfaction. It offers several benefits, including valuable insights into customer needs and preferences, identification of areas for product or service enhancement, and the opportunity to build stronger relationships with customers by showing that their opinions are valued and taken into consideration. Responding to feedback can also help in mitigating negative experiences and turning them into positive outcomes, thereby increasing customer loyalty and trust. Furthermore, leveraging customer feedback in your marketing strategies can enhance your brand's credibility and attract new customers, as it demonstrates a commitment to quality and customer satisfaction.

How can creating a customer loyalty program help in retaining customers?

Creating a customer loyalty program is a powerful strategy for retaining customers by rewarding them for their continued business. Such programs encourage repeat purchases through incentives like discounts, exclusive offers, or points redeemable for products or services. Loyalty programs not only enhance the customer experience by providing additional value but also foster a sense of belonging and appreciation among customers. This emotional engagement can lead to increased customer lifetime value and advocacy, as satisfied customers are more likely to recommend the brand to others. Implementing a loyalty program can differentiate a brand in a competitive market and contribute to building a loyal customer base, which is crucial for long-term business success.

In what ways can social media marketing and promotions increase my customer base?

Social media marketing and promotions can significantly increase your customer base by leveraging the vast and diverse audiences present on these platforms. By creating engaging content, running targeted advertising campaigns, and engaging with users through comments and messages, brands can enhance their visibility and attract new customers. Social media promotions, such as contests, giveaways, and special deals, can encourage user participation and sharing, further amplifying your reach. Additionally, social media platforms offer advanced targeting options, allowing you to reach specific demographics, interests, and behaviors, ensuring that your marketing efforts are focused on individuals most likely to be interested in your products or services.

How does understanding the difference between a customer base and an installed base help my marketing strategy?

Understanding the difference between a customer base and an installed base is crucial for developing effective marketing strategies. The customer base includes all individuals or entities that have purchased from your company, while the installed base refers specifically to those currently using your products or services. Recognizing this distinction allows for more targeted marketing efforts. For example, strategies aimed at the installed base might focus on upselling or cross-selling, leveraging existing product usage to introduce complementary offerings. Conversely, strategies targeting the broader customer base might aim to re-engage inactive customers or promote new product lines. Tailoring your approach based on these distinctions can lead to more efficient use of marketing resources and higher conversion rates.

What are some key strategies for balancing customer acquisition and retention?

Balancing customer acquisition and retention requires a multifaceted approach that considers the unique value and lifecycle stage of each customer segment. Key strategies include personalizing marketing messages to cater to both potential and existing customers, implementing loyalty programs to reward repeat business, and utilizing customer feedback to improve products and services continuously. Diversifying marketing channels can also help, ensuring that efforts to attract new customers do not overshadow initiatives designed to keep current customers engaged. Additionally, regularly analyzing customer data to understand behavior and preferences can inform targeted offers and communications that effectively address the needs of both groups. By maintaining a focus on delivering exceptional customer experiences, businesses can successfully attract new customers while retaining their existing base, fostering sustainable growth.

About Bruno Gavino

Bruno Gavino is the CEO and partner of Codedesign, a digital marketing agency with a strong international presence. Based in Lisbon, Portugal, with offices in Boston, Singapore, and Manchester (UK) Codedesign has been recognized as one of the top interactive agencies and eCommerce agencies. Awarded Top B2B Company in Europe and Top B2C company in retail, Codedesign aims to foster personal relationships with clients and create a positive work environment for its team.  

He emphasizes the need for digital agencies to focus on data optimization and performance to meet the increasingly results-driven demands of clients. His experience in digital marketing, combined with a unique background that includes engineering and data, contributes to his effective and multifaceted leadership style.

Follow Bruno Gavino on Linkedin

About Codedesign

Codedesign is a digital marketing agency with a strong multicultural and international presence, offering expert services in digital marketing. Our digital agency in Lisbon, Boston, and Manchester enables us to provide market-ready strategies that suit a wide range of clients across the globe (both B2B and B2C). We specialize in creating impactful online experiences, focusing on making your digital presence strong and efficient. Our approach is straightforward and effective, ensuring that every client receives a personalized service that truly meets their needs.

Our digital agency is committed to using the latest data and technology to help your business stand out. Whether you're looking to increase your online visibility, connect better with your audience, get more leads, or grow your online sales. For more information, read our Digital Strategy Blog or to start your journey with us, please feel free to contact us.

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