Repeat Clients: The Lifeblood of Your Animation Business
In a world where more is more, gaining new clients tends to stay at the forefront of a company’s to-do list. Many businesses focus most of their budget on new customer acquisition, and unfortunately, retaining customers takes the backseat of the priority bus.
For example, for the average e-commerce store, 80% of the marketing budget is spent on new customer acquisition, and 20% is spent on customer retention.
Yet surprisingly, at least for the retail stores in the U.S., repeat customers only comprise 8% of the total visitor traffic, yet they contribute 41% to the total revenue.
Now, that is big! And although this data was taken from retail stores, it doesn’t mean that this sad state could not apply to animation businesses.
Now imagine if that 8% will turn to 20% of retained clients getting your animation service. Amazing, right? Why then are we not focusing on clients who can put more profits into our business?
Here we give you 5 reasons why you should focus on repeat clients.
1) Repeat Clients’ Love Rarely Dies
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Let’s be clear: new customer acquisition IS important. After all, how will you get repeat clients if they have not become first-time clients?
Have you ever had a favorite restaurant? What made you come back, again and again? Most likely, you will say, the product. But alongside it also comes one of the most important and prioritized factors in business: customer service.
You may have a killer animation, but if you will not communicate with your client right or give them a good experience working with you, it’s all for naught.
Clients fall in love because of two critical factors: How you animate their videos and how you form a relationship with them. You will secure your relationship with your clients by making them feel happy, respected, and valued as customers.
And once they have a great first experience working with you, most likely, they will come back for more.
2) Repeat Clients Have Higher Chance of Conversion
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According to Paul Farris, author of Marketing Metrics, a repeat customer has a 60% to 70% chance of converting. This means lesser expenditure on other conversion tactics focused on marketing to new clients.
If you are animating on your own and have a pile load of work to do, promoting your work and focusing your energy on getting to new clients can be quite challenging and time-consuming.
However, selling again to clients who have used your service before is most likely a time-saving path for your marketing strategy.
Repeat clients are easier to sell because you don’t need to do hard marketing to convince them. They already know the value of your work; however, they need to know it better by giving them a better animation video the next time.
You will still need to market your product to these clients, but you will have a 60-70% chance of them buying again this time.
3) Repeat Clients Will Most Likely Use Your Service Again
It might take time, but they will avail of your service again. Here’s the catch: It’s not only your work but your brand that will most likely make them contact you again for their next animation project.
According to a study, a huge 77 percent of consumers in the U.S. say that they have relationships with specific brands for 10 or more years. For millennials, a surprising percentage of 60% said the same.
With another study, 50% of loyal customers will make more purchases with their preferred companies. So, remember, when doing your marketing strategy, one thing to ask yourself is: How can I make my clients avail my service again?
4) Repeat Clients Spread the Word
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Your satisfied clients are your best brand ambassadors. Remember: “satisfied.” With bad service and products, expect them to spread that experience as well.
And who doesn’t want free product promotion? And it’s effective because it carries weight. Most clients would rather listen to other client reviews than what a company says about itself.
Not only is it effective, but it’s also cheaper. According to some studies, it is five times more costly to get a new client than it does to keep an existing one. Furthermore, it costs 16 times more of marketing expenditure to bring new customers to the level of spending of your repeat clients.
One-time buyers refer other people too if they are happy with your service, but they refer up to 50% more people with repeat customers.
It might be hard work to please and satisfy your current potential repeat client but it will be more costly to lose one and find another new client again.
5) Repeat Clients Build Up Your Success Portfolio
Businesses are built on customer retention. Once you have established a lasting relationship with your present clients, they can be part of your story as an animator.
Other than the excellence of your animation and your customer service, their word-of-mouth is gold. As a matter of fact, 92% of people trust word-of-mouth marketing. This means referrals and having your works for these clients a part of your portfolio will surely boost your credibility as an animator.
Now That You Know Your Whys, What’s Next?
We shared with you 5 reasons why it is important to not just retain your clients but to grow through them. If you are just beginning in animation, then we encourage you not to give up on your clients. Pretty soon, you will have your repeat clients, and the rest will be history!
Now that you know your importance of retaining your clients and having them avail of your service again, it is crucial to understand that helping them succeed should be your priority and an animator. Having this perspective will surely propel your business to another level.
We hope that these five reasons will help you understand your clients better and the importance of everything you do in the initial stages of your relationship with them. It is also important to know the technicalities and how you can improve your business to suit the needs of your repeat clients.
For this reason, we offer some programs that may help you in your animation business journey! Try out our programs made by animation experts for an expert like you! Join our free masterclass and download a copy of our free marketing handbook.