It is six to seven times more expensive to acquire a new customer than it is to retain an existing customer (Bain & Company Study). Bain & Company’s study also showed that a 5% increase in customer retention can lead to profit increase of 25-100%.
How can you increase your customer wallet share?
Know your customers. Know which customers are profitable. Know what your customers want and need (and what they don’t know they need).
Track and increase customer satisfaction. Survey your customer’s satisfaction levels and then take action to improve the levels. Do a customer touch point map to analyze each point at which you “touch” the customer. Identify points of friction and resolve them!
Engage your customers. Add value to your customers experience by providing information and learning opportunities related to your products or services. Give valuable information for free to your customers. Increase your customer touchpoints (making each touchpoint a positive experience). Interact with them on social media as well as through traditional marketing channels. More positive touch points will increase brand awareness, which has a direct correlation to wallet share, according to a study done by Ipsos Loyalty and professors at Fordham University and Vanderbilt University’s Owen Graduate School of Management.
Other articles and information I found related to this topic that you might find helpful:
Engagement: The Secret to Profiting From an Upside-Down Economy, by Chris Cottle, Allegiance, Sales & Marketing Management
Increase your “Share of Wallet” through Customer Experience Management and “Trusted Relationships”
by Rick Graves, CoreBrand, Interactive Intelligence blog
Know Your Customers’ Wallet Share to Retain the Best Customers, by Laura Patterson, Customer Think blog