1. It is cheaper - Although it may seem rewarding to attract new customers to your automotive parts store, it often demands a lot of expense and hard work. The costs linked with repeat businesses are significantly lower. 70 percent of companies have accepted that it is economical to retain than acquire a new customer. Many participants in the survey further added that acquiring a customer can be 7 times more expensive than retaining one.

Your focus should be on targeting your existing customer base that has a considerable interest in your offering and is more likely to purchase your products or services. By focusing on existing customers, you are strengthening your chance of making a sale. There are several studies that have established that the prospect of conversion of a loyal customer is as high as 60-70 percent. The likelihood of converting a prospect is just 5-20 percent.

Marketing your offerings to existing customers reduces your expenditure on ads and also gives you a chance to prove your commitment towards rewarding their loyalty. Any effort you make in this regard gives a nice uplift to your brand. You can try customer retention programs such as birthday offers and loyalty programs to entice them. These do not require any massive effort or investment. However, they end up conveying to your customers that you value their association with your business. This can prove to be immensely profitable in the long run.

2. It is faster - It is much convenient to sell your products and services to an existing customer than to a new one. This is because you have already overcome all the barriers you have before converting a prospect to a customer. Existing customers tend to trust you and require just a little push to increase your profit share. The sales process is also quicker when you are dealing with an existing customer. Altogether, existing customers know that your company is trustworthy and your products are beneficial. You provided them a pleasant experience when they purchased from your store previously.

Persuading potential leads, on the other hand, can be a cumbersome task in comparison to dealing with existing customers. The bottom line is that you need to put in more effort and invest more time in convincing leads to become your customers. However, existing customers require little convincing. All they are looking for is a consistent and pleasant experience. All they want is that you live up to the promises and provide quality and pleasant purchase experience. Hence, focusing on customer retention can prove to be more rewarding.

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3. It improves your business position - The best thing about having high customer retention levels is that you can streamline the entire process of targeting your customers. You will have a better understanding of who your customers are and about their likes and dislikes. The data is important for you to provide a better experience for your existing customers. The data will also help you in creating a targeted and personalized promotion. This will further boost your chances of success.

Also, your future acquisition efforts will also receive a massive boost when your customers are more than happy to stick to you and your offerings. Others will be compelled to find why your existing customers are so loyal to you and would, in turn, end up converting. If you neglect your existing customers, then they will end up switching and shopping with your competitors. Retention is vital as statistics show that 61 percent of consumers turn to the competitors if they have had an unpleasant experience with a business.

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Your focus should mainly be on developing the best customer retention plan that is apt for your automotive parts store. Who doesn’t want to be famous as a brand or a business that deeply cares for its customers? 

4. Ensures sustainable growth of your business - There is sufficient statistical evidence to prove that customer retention is good for the sustainable growth of your business. Several studies have highlighted that over 80 percent of future profits of a company are driven by 20 percent of their existing customers. Globally, the average value of a lost customer is roughly $200.

5. Existing customers are more loyal - When you focus on bettering the experiences of your existing customers, they reward you with their loyalty. This can prove to be immensely beneficial for the future of your business. If they are sticking to you and you put in efforts to improve your relationship with them, then they are more likely to remain loyal to your brand.

6. Engaged customers provide feedback and are more forgiving - 
Evaluating feedback is essential for the success of any business. It is with this data you can measure the success of your efforts. Customers who provide feedback are hinting you how to improve your offerings so that they can gain a better experience in connecting with you. If you react immediately to any feedback even if it is negative and put in efforts for rectifying your mistakes, then you are more likely to retain that customer for long. They would be moved with your gesture and would turn to your more because they feel that you genuinely care about their opinions. Accenture carried out a study to understand the impact of customers bailing out of a business. It was highlighted in the study that over $1.6 trillion is lost globally every year because of customers churning out after a poor experience.

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